Banking and the Consumer Protection Act, 2019

YES, banking services fall under the Consumer Protection Act, 2019 (CPA 2019). Banks

provide ﬁnancial services, and if a consumer faces any deﬁciency, they can seek

redressal under Consumer Protection Act, 2019.

Banks as "Service Providers" Under Consumer Protection Act, 2019

• Section 2(42) of CPA 2019 deﬁnes "services" as any facility provided for banking,

ﬁnancing, insurance, etc.

• Section 2(11) - Deﬁciency in Service: If a bank fails to provide proper service, the

consumer can ﬁle a complaint.

Examples of Banking Services Covered:

1. Savings and current accounts

2. Loans and credit cards

3. Fixed deposits, recurring deposits

4. Internet banking and mobile banking

5. ATM services

When Can You File a Complaint

1. Unfair charges (hidden fees, unauthorized deductions)

2. Fraudulent transactions (unauthorized withdrawals, phishing scams)

3. Delay in processing loans, payments, or refunds

4. Mis-selling of ﬁnancial products (insurance, mutual funds without consent)

5. Defective ATM transactions (cash not dispensed but amount debited)

6. Refusal to honour cheques or drafts without valid reasons

7. Excessive service charges for basic banking services

Complaint Procedure.

1. Internal Banking Grievance Mechanism: First, complain to the bank’s grievance

cell.

2. Banking Ombudsman (RBI): If unresolved in 30 days, escalate to Banking

Ombudsman under the RBI Integrated Ombudsman Scheme, 2021.

3. Consumer Commission: If dissatisﬁed with the Ombudsman’s response, ﬁle a

complaint under Consumer Protection Act, 2019 based on pecuniary jurisdiction

 District Consumer Commission

 State Consumer Commission

 National Consumer Commission

For better chances of successful claims, keep the following with you

1. Account Details including passbook

2. Account statements

3. Screenshots and digital evidence of transactions and acknowledgements.

4. Bank communication via email/SMS/post.