RBI Says Cash-On-Delivery Deals Not Allowed
The most convenient payment option Cash-on-delivery (Cod) provided by several online retailers such as Flipkart and Amazon may be a regulatory grey area as per the Reserve Bank of India's (RBI's) response to a Right to Information (RTI) query.
The RBI has said that e-commerce platforms are "not authorised" to collect money from customers on behalf of third-party vendors in cash-on-delivery (CoD) deals. RBI made the statement in a reply to an RTI query.
“Aggregators/payment intermediaries like Amazon and Flipkart are not authorised under Section 8 of the PSS (Payments and Settlements Systems) Act, 2007,” mentioned the apex bank in response to the report.
The statement by the RBI could be a critical blow to the e-commerce industry in the country. According to the reports over half of th...