What’s the point if the consumer wakes up but the system remains asleep?
Despite high-decibel campaigns like Jago Grahak Jago, the consumer rights movement in India remains more symbolic than substantial. In this eye-opening conversation with international consumer policy expert Bejon Misra, we explore how banks, insurers, and financial inclusion schemes often fail the very citizens they claim to serve. From hidden charges and misleading loan offers to the staggering number of inoperative Jan Dhan accounts, Misra pulls no punches in exposing the systemic neglect of consumer welfare in India—and lays out a powerful roadmap for reform. A must-read for anyone concerned about the real state of consumer protection in the world’s largest democracy. The consumer awareness movement in India looks good on paper but feels hollow on the ground. Why is that? You’re absolutely right—it’s a movement that has been stifled by tokenism. While we have progressive laws and catchy campaigns like Jago Grahak Jago, the ground reality is that consumers still face exploitation every day. The real issue is effective enforcement and lack of efficient redressal. Rights exist on paper, but access to justice is long drawn, cumbersome expensive, fragmented, and out of reach for most. What we need is not just awareness but accountability and transparency in the system. Heads must roll in case of delayed redressal at the cutting edge. Do slogans like “Jago Grahak Jago” carry any real weight today? They serve a purpose in spreading awareness, but they have become more symbolic than impactful. If the consumer wakes up but the system remains asleep, what have we achieved? We need to move from slogans to solutions—timely grievance redressal, ethical business practices, and strong regulatory mechanisms that protect the consumer at every step in a prompt and honest manner. Banks often change terms like interest rates or service fees unilaterally. Isn’t that a breach of trust? It absolutely is but as you know it is governed by certain globally accepted standards, which is not known to the common bank customer. When consumers sign up for a product—whether it’s a savings account or a fixed deposit—they expect those terms to hold. Changing them without proper notice or consent is not just unethical, its borderline exploitative. Regulatory bodies must intervene more proactively to prevent such one-sided practices and encourage consumer engagement. Many loans are advertised with “attractive rates” but hide several charges. Why banks are not held accountable? Transparency in lending is a fundamental right of the consumer. Unfortunately, many banks indulge in marketing gimmicks while burying actual charges in fine print. Prepayment penalties, insurance add-ons, legal fees—these are not disclosed clearly. The Reserve Bank of India needs to enforce stricter disclosure norms and impose penalties for misleading promotions. RBI does impose fines and penalties on banks for several violations, but the money recovered by RBI is never passed on to the respective bank customers. What are your views on the health insurance sector and how it treats consumers? The health insurance sector is riddled with discriminatory clauses and confusing exclusions. The common consumer doesn’t know how to read policy documents—nor should they be expected to decode legal jargon. Denial of claims on technical grounds, poor awareness of network hospitals, and aggressive premium hikes have made health insurance a cause of distress rather than relief. We need a patient-centric model where insurers are held accountable for every rejected claim. What’s the biggest loophole in consumer protection laws today? The biggest problem is delayed justice. Even with the new Consumer Protection Act 2019 and establishment of the Central Consumer Protection Authority (CCPA), most consumers don’t file complaints because they know it will take years or go nowhere. The process is long, intimidating, and often biased toward corporates with legal muscle. We need local, fast-track consumer redressal systems that work in real time—especially for vulnerable groups. PMJDY boasts massive numbers. But if crores of accounts lie dormant, what’s the point? Financial inclusion must go beyond numbers. A bank account is not a symbol of empowerment unless it is used and found useful. The 2.34 crore inoperative accounts in UP alone point to a failure of follow-through in terms of customer care and relationship building with the bank account holders. There’s no literacy, no usage incentives, and often no trust in the system. The money in dormant accounts is a national shame—its wealth lying idle when it could be transforming lives. What needs to change to make Jan Dhan accounts more active and relevant? First, we must provide financial literacy in regional languages. Second, we need doorstep services for rural users. And third, we must link usage to real benefits—such as easy credit, micro-insurance, or pension access. Banks must be incentivized not just to open accounts but to nurture them and keep them in active mode. Is there enough consumer awareness in rural and semi-urban India? No, and this is where the real crisis lies. Most people don’t understand what they are signing when they take a loan or buy insurance. Consent becomes meaningless in the absence of comprehension. We need a national consumer literacy mission—just like the literacy movement of the 1990s. Unless we empower citizens with knowledge, every system we build will be rigged against them. What role should civil society and the media play in consumer protection? An active civil society and free media are the backbone of consumer empowerment. NGOs can offer local guidance, legal help, and awareness, while media can amplify injustices and expose systemic flaws. But more importantly, they must move from episodic outrage to continuous engagement. Consumer rights deserve a permanent place in the national discourse—not just when a scam breaks. We are still struggling to finalise the National Consumer Policy for the last 3 decades. If you could make one immediate policy change, what would it be? Mandate that all financial products—bank accounts, loans, and insurance—must have a clear, standardized disclosure sheet in the consumer’s regional language, read aloud and explained before signature before credible witnesses. And record that consent via video. It’s simple, it’s transparent, and it protects the most vulnerable. Let’s bring
What’s the point if the consumer wakes up but the system remains asleep? Read More »