Regulating Digital Banking: Legal Strategies for Risk Management and Consumer Protection in India

The rapid growth of digital banking in India—driven by innovations such as Unified Payments Interface (UPI), mobile wallets, and AI-enabled credit scoring—has transformed financial services delivery while introducing unprecedented regulatory and operational challenges. Although the Reserve Bank of India (RBI) and allied regulatory bodies have implemented frameworks for digital payments, cyber security, and consumer protection, the pace of technological advancement often outstrips legal adaptation. This paper examines the evolving legal strategies for risk management and consumer protection in India’s digital banking ecosystem, with a focus on compliance, fraud prevention, and dispute resolution.