Malaysian regulation versus e-banking

Abstract

Electronic technology has become increasingly important for people in their personal as well as their commercial lives. The increasing pace at which electronic technology is expanding in usage has alerted lawmakers to take stock of the inadequacies of the law. New Acts have been enforced to protect the users of electronic technology. This paper, however, is only concerned with one aspect of this technology, that is, ebanking. The paper traces the electronic revolution within the Malaysian banking sector and presents the current state of affairs with respect to the legal developments. A number of new laws have been promulgated to cater for transactions based on electronic impulses. The paper outlines the major import of the Acts, especially those that have a significant impact on e-banking and further seeks to point out the deficiencies. The government, it needs to be stressed, is greatly encouraging electronic activity, as evidenced by its creation of the Multimedia Super Corridor. The central bank is, however, rather cautious of allowing full-fledged e-banking. The central bank guarantees deposits at commercial banks so its reticence to allow electronic activities, which are not fully covered by law, is understandable. It must be reiterated that the ultimate success of e-banking lies in its patronage and its patronage is a function of the security, as offered by law.