Digital Banking and Legal Challenges in India: A Critical Analysis
Lead author · Corresponding
Vishnu Prakash Pandey
LL.M. Student at Amity Law School, Amity University, Lucknow, India
Co-author
Dr. Shova Devi
Assistant Professor at Amity Law School, Amity University, Lucknow, India
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DOIhttps://doij.org/10.10000/IJLMH.1111683
Abstract
Digital banking in India has grown faster than the laws meant to govern it. While UPI and mobile banking have made life easy, they have also opened doors for high-tech fraud putting ordinary users at risk. This paper analysis the legal gaps in the Information Technology Act, 2000, and the new DPDP Act, 2023. It argues that the current "customer-blaming" approach of banks needs to change. Through a study of recent 2026 case laws and international models like the UK's CRM code, this research suggests a new "Digital Banking Act" to protect the common man from AI-driven scams and regulatory obscurity areas and can help restore trust in the system.
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