Legal Issues In Digital Payments And Consumer Protection In India
- IJLLR Journal
- Mar 16
- 1 min read
Likitha M, JSS Law College, Mysuru
M C Usharani, JSS Law College, Mysuru
ABSTRACT
The rapid development of digital payment systems has significantly transformed the financial landscape in India. With the growing use of internet banking, mobile wallets, debit and credit cards, and Unified Payments Interface (UPI), consumers increasingly rely on electronic platforms for financial transactions. While digital payment systems enhance convenience, efficiency, and financial inclusion, they also create several legal and regulatory challenges related to cyber security, consumer protection, privacy, and liability for unauthorized transactions. Incidents of online fraud, phishing attacks, identity theft, and data breaches have raised concerns regarding the adequacy of existing legal frameworks in protecting consumer interests. This paper critically examines the regulatory structure governing digital payments in India, including the Payment and Settlement Systems Act, 2007, the Information Technology Act, 2000, and the Consumer Protection Act, 2019. The study also analyzes the role of regulatory authorities such as the Reserve Bank of India in supervising digital payment systems. Further, the paper explores emerging legal issues related to fintech companies, data protection, and dispute resolution mechanisms. The article concludes by proposing reforms aimed at strengthening consumer protection and ensuring secure digital financial transactions in India.
Keywords: Digital Payments, Consumer Protection, Cyber Fraud, FinTech Regulation, Data Privacy, RBI Guidelines, Unauthorized Transactions, Digital Banking Law.
