THE INFLUENCE OF CUSTOMER EDUCATION AND THEIR PROTECTION IN BANKING SERVICES

Abstract

Purpose: The prime objective of the study is to analyse financial literacy among consumers and also examine the impact of financial literacy on consumer protection. Design/Research Methodology/approach: A random sample of 212 customers was chosen as the respondents for the study. A self-administered questionnaire was used for the collection of primary data and distributed to the random samples and has been tested with standard deviation and one sample t-test. Findings: This study has found that most of the respondents are unaware of the grievance redressal system exists for banking customers. Research Implications: Financial Institutions are regulated to provide better products and services rather than taking advantage of financially illiterate consumers. By giving clear and specific information to its customers and providing adequate mechanisms to resolve the disputes of customers, financial institutions can deliver fair and honest services and protect the consumer interest Scope for future work / Research limitations: This contribution mainly focused to analyse the financial literacy among consumers and also examine the impact of financial literacy on consumer protection. but it has not studied any other variables that may have impact on consumer protection in banking sector. Further this contribution surveyed 212 respondents from a particular city, hence the result may or may not be applicable to the other cities or states in India. Originality/value: A literature review found that there are various studies on financial literacy and its impact on consumer protection. The paper describes how Socio demographic factors of the respondents are are related to the financial literacy and consumer protection. Key Words: Consumer Protection, Consumer unawareness, financial illiteracy, Paper type: Research paper