Our ancestors were always how forward than us. They considered banks when people were battling their lives. it’s believed that this process came once they need to stay money with Kings, lend money from them, and provides the interest. Nowadays banks are the mainstream for our livelihood. The system of banking is formed an extended time back for the secure livelihood of a private. The system of banks is now a neighbourhood of everyone’s life. And in times linked today people are not able to go to bank everyday for simple purposes and a system like e-banking has been produced since the year 1997.

E-banking

Electronic banking also referred to as E-banking . it’s many names like e-banking, virtual banking, online banking, or internet banking. It’s simply the use of electronic and telecommunications networks for delivering various banking products and services. The processes are e-banking where a customer can access his account and may conduct many transactions using his computer or mobile. Today, mostly new-generation banks offer an equivalent to their customers. In fact, all major banks provide e-banking services to their customers in their fast and daily lives.

Legal Perspective

•         The Indian legal code doesn’t define the term ‘fraud’ exclusively and nor does it categorises banking fraud as a definite offense. However, there is certain provision within the act which are attracted in banking fraud cases.

Counterfeiting coins or Currency Notes are considered as offence under the Indian legal code and it is often said to be an instance of fraud committed. Further, there are often said to contain provisions concerning banking frauds wherein section 378 and section 379 states about theft and its punishment respectively.

•         Section 10 of the Indian Contract Act states which agreements are contracts. There exists a relationship between the banker and their customer. Hence, it is often said that the Act is going to be applicable to some extent in handling banking frauds in India.

Section 16 of the same Act states about under influence which may be during a way are often categorised as a lesser degree of fraud. Section 17 of the Act states about the concept of fraud elaborately and section 18 describes specially with misrepresentation. In Oriental Bank Corporation v. John Flentming, the court analysed the concept of legal fraud. Lastly section 19 states about the voidability of agreements without free consent.

•         The Banking Regulation Act,1949 doesn’t help in banking frauds directly and thus one hardly cares applying the supply of this Act in handling banking frauds. However, the supply under this Act somewhat helps one in understanding the operations of the banking business which successively might help in understanding the explanations behind the occurrence of banking frauds.

•         The IT Act 2000, along with amending the Indian legal code to bring within its scope conventional offences committed electronically, has also created:

a replacement breed of technology offences, the prevention of which is accompanying the upkeep of a secure electronic environment for e-banking, and for prevention of banking frauds and forgeries. Section 94    of the Act also amended certain provisions of the RBI Act, 1934. Digital forgery, unauthorized access to the network, data alteration, skimming and online identification theft and impersonation are a number of the ways banking frauds are perpetrated within the online world.

•         The transaction like Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) and other sorts of fund transfer to facilitate the electronic fund transfer and make sure the legal admissibility of documents and records. Federal Reserve Bank of India exercises the electronic payment system Electronic Cleaning Service (ECS) and Electronic Fund Transfer(EFT) which are introduced in 1995 and RTGS system in 2004, NEFT system in 2005 and cheque transaction system in 2008.

The Federal Reserve Bank of India also issued guidelines on security issue and risk mitigation measures concerning card present transaction. during this circular RBI has taken measures to secure card not present transaction and making it mandatory for banks to place in situ additional authentication or validation for beat one recurring transaction supported information not available on the credit or debit or prepaid cards.

RBI also directed the banks and other stakeholders to initiate immediate action for accomplishing the subsequent task within a reasonable time. It also gives regulation to the commercial banks of India concerning the implementation of fraud risk management practices and securing the            technology infrastructure. With the banking laws Amendment Act,2012 .RBI has the facility to for any information and cause inspection of business of any associate enterprise of the bank.

Conclusion The entire period of evolution of the banking system remains ongoing and every day new changes are often seen within the banking sector for the betterment of the economic process of the country. It can be therefore concluded that the India today in changed a lot and is keep on changing for a better tomorrow. The digital India or e-banking system in the fast life of the people brings new hope to the banking system as well.

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