A Study on Consumer Protection Framework in Indian Financial Sector

R.Raghavendra Rao*

Abstract
A Consumer is one, who expects to get par benefit for the money he paid for the product/service.
If the consumer does not get equal benefit, it means, his protection is under question. Consumer
protection has become a wide range of matters in discussion in the domain of increased value of
goods and services across the globe post Globalization. Various regulations, rules, laws, acts etc
have been drafted to protect the interests of the Consumers in the society. Consumer Protection
Act, 1986 was enacted by Parliament for the welfare of the consumers in buying goods or
obtaining services. After the Global Financial Crisis in 2008, several economies have identified
the importance of protection of consumers in financial services. In India, we had formed
Financial Sector Legislative Reforms Commission (FSLRC) to regulate the volatility in the
markets. The Consumer Protection in financial services is very important. No consumer should
get grievances due to misleading of information or unsymmetrical regulations and rules.
Unfortunately, in India, the Consumer Protection Act, 1986 shares a major meal with goods and
services and a tiny with financial services. The present paper deals with the Consumer Protection
Frame work in Financial Services & Sector and the reasons for which we require such a
strengthened frame work. The paper finds some of the key observations which are incorporated
in the research findings.

Key Words: Consumer Protection, Indian Financial Sector, Financial Frauds, Consumer
Behavior.

*Head, Depart of BBA, Indian Institute of Management and Commerce, Hyderabad.The Author can be
reached at +91-9573027171 or at raghavendra.finance108@gmail.com