ADR In Resolving Banking And Financial Disputes: A Regulatory Perspective
- IJLLR Journal
- 3 days ago
- 1 min read
Devanshi Srivastava, Amity University, Lucknow
Dr. Reshma Umair, Amity University, Lucknow
ABSTRACT
Alternative Dispute Resolution (ADR) has emerged as a crucial mechanism for resolving banking and financial disputes efficiently and effectively. The complexity and volume of disputes in the banking and financial sector have increased significantly due to the growing reliance on financial services and the rise of digital transactions. ADR methods, including arbitration, mediation, and conciliation, offer a structured framework for resolving conflicts outside traditional court proceedings, thereby reducing the burden on the judicial system and ensuring faster resolution. This paper explores the regulatory framework governing ADR in banking and financial disputes, highlighting the role of key regulatory bodies such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The study examines how regulatory guidelines and legal provisions have shaped the adoption and effectiveness of ADR mechanisms in the financial sector. It also evaluates the challenges faced in implementing ADR, such as enforceability of awards, jurisdictional issues, and compliance with international standards. Furthermore, the paper discusses recent reforms and policy changes aimed at strengthening the ADR framework and enhancing investor confidence. The analysis underscores the importance of a well- defined regulatory structure to ensure transparency, fairness, and efficiency in dispute resolution. The findings suggest that a robust ADR framework not only expedites conflict resolution but also improves customer trust and stability in the financial sector. Recommendations include promoting awareness about ADR, streamlining procedural complexities, and encouraging collaboration between regulatory bodies and financial institutions.
Keywords: Alternative Dispute Resolution, Banking Disputes, Financial Sector, Arbitration, Mediation, Regulatory Framework, RBI, SEBI
