1. Aim of the Consumer Protection Act
  2. Key rules of the Consumer Protection Act, 2019
  3. Recent Stand of Consumer Protection In Indian Banking Sector
  4. Role of RBI in consumer protection setting in Indian Banking Sector

Aim of the Consumer Protection Act

As per the act; someone is named a client World Health Organization avails the services and buys any smart for self-use. Price to say that if someone buys any smart and avail any service for marketing or industrial purpose, isn’t thought of a client. This definition covers every kind of transactions i.e. on-line and offline. Client Protection Act, 2019 could be a law to shield the interests of the shoppers. This act was inevitable to resolve an outsized variety of unfinished client complaints in client courts across the country. It ways in which and suggests that to resolve the buyer grievances quickly. The essential aim of the buyer Protection Act, 2019 to avoid wasting the rights of the shoppers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

Key rules of the consumer Protection Act, 2019

1. Institution of the Central client Protection Authority (CCPA):

The act has the availability of the institution of the CCPA which can defend, promote and enforce the rights of shoppers. The CCPA can regulate cases associated with unfair trade practices, dishonest advertisements, and violation of client rights.

The CCPA can have the proper to impose a penalty on the violators and spending orders to recall product or withdraw services, discontinuance of the unfair trade practices and compensation of the worth paid by the shoppers.

The Central client Protection Authority can have Associate in nursing investigation wing to enquire and investigate such violations. The CCPA are going to be headed by the Director-General.

2. Rights of consumers:

The act provides rights to the consumers;

  • To have data regarding the amount, quality, purity, potency, price, and customary of products or services.
  • To be protected against risky product and services.
  • To be protected against unfair or restrictive trade practices.
  • To have a spread of products or services at competitive costs

3. Prohibition and penalty for a dishonest advertisement:

The Central client Protection Authority (CCPA) can have the ability to impose fines on the endorser or manufacturer up to 2-year imprisonment for dishonest or false advertising (Like Laxmi Dhan Warsha Yantra). Price to say that continual offense, might attract a fine of Rs fifty 100000 and imprisonment of up to five years.

4. Client Disputes Redressal Commission:

The act has the availability of the institution of the buyer Disputes Redressal Commissions (CDRCs) at the national, state and district levels.

The CDRCs can entertain complaints connected to;

  • Overcharging or deceptive charging
  • Unfair or restrictive trade practices
  • Sale of risky product and services which can be risky to life.
  • Sale of defective product or services

Recent stand of consumer Protection Act in Indian Banking Sector

The need and importance of the buyer protection is increasing at a rate of knots particularly within the Indian banking sector. We’ve encountered several incidents within the banking sector wherever the shopper’s area unit misled because of the failure of bank’s operational capacities resulting in the monetary insecurity amongst the innocent customers. The recent example is that the geographical region and geographic region Co-operative bank issue, wherein, the bank of Asian country (“RBI”) beneath Section 35(A) of Banking Regulation Act, 1949 obligatory the regulative restrictions and withdrawal restrictions upon the aforementioned bank because of its irregularities disclosed to the tally, that successively has affected the perfect customers.

Role of RBI in consumer protection setting in Indian Banking Sector

From past few decades, the tally has concerned itself in strengthening the fiduciary relationship between the banks and also the customers because it holds the responsibility of maintaining the monetary health within the Indian banking sector. At constant time tally includes a major duty in build up a robust client confidence amongst general public by making certain the soundness and also the safety within the Indian banking industry.

When previous works of tally area unit derived, we are able to note its efforts in introducing Banking investigator (“BO”) theme 2006. BO is Associate in Nursing ‘Alternative Dispute Resolution Mechanism’ for breakdown the disputes between a bank and its customers. As of these days, there are a unit twenty BO offices in our country. However, the Indian Banking Sector is at the same time exposed to innumerable renowned and unknown risks and uncertainties like cyber security breaches, phishing/ vishing frauds, knowledge thefts, misuse of knowledge, knowledge privacy breaches, malware attacks, etc. whereas it’s renowned that these risks exist, the garb during which they manifest, once and at what severity, is unknown. During this background, the role of the investigator has become difficult as there’s a rise within the variety of complaints, their quality, also because the ability to cope with the dynamic monetary setting. Also, tally has done a outstanding job by fitting the client Service Department in 2006 to act because the nodal department within the tally for grievance redressal of complaints received from the general public. The department is renamed as client Education and Protection Department (CEPD) and continues to concentrate on providing grade taking part in field between suppliers and shoppers of economic services, by easing the imbalances arising from data irregularities, inadequate disclosures, and unfair treatment.

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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