There is a need for an adequate legal and regulatory framework to be put in place, including data protection provisions, to make consumer Internet banking successful in India, Maharashtra Additional Director-General of Police, CID, Jayant Umranikar said in Mumbai on Thursday.
Speaking at a seminar on banking security in Mumbai, Umranikar said, "we also need to have legislations on the lines of USA's The Fair Credit and Billing Act and The Electronic Fund Transfer Act for disputed transactions", he said.
On Internet banking, Umranikar said there were certain issues that needed to be identified and addressed more directly "either through an amendment to the Banking Regulation Act or as guidelines issued by RBI, which are mandatory and enforceable at the instance of third parties."
He said as per RBI recommendations, digital signature is the only recognised mode of authentication and simply clicking "I accept" may not suffice.
Issues, which define reciprocal rights and liabilities in Internet banking, such as click-wrap contracts, need to be addressed, Umranikar said.