Amazon & Flipkart Wedged as Cash on Delivery Payment Mode by E-Commerce Firms Not Authorised, says RBI
In a response to an RTI query, the Reserve Bank of India stated Cash of Delivery payment option by Flipkart, Amazon and other retailers is not authorised.
Cash-on-delivery (CoD) mode of payment option provided by Flipkart, Amazon and other online retailers is a grey matter, as per the report from Economic Times. The Reserve Bank of India (RBI) responded to Right to Information (RTI) query by stating that the payment mechanism practised by online retailers in the e-commerce sector is illegal. Man Orders Gold Coins Online From Flipkart, Receives an Empty Box.
Cash-on-delivery (CoD) option was introduced by India's leading e-commerce giant - Flipkart in the year 2010 that created huge boom in the sector. A recent RTI query has revealed that the mode of payment falls under 'grey area' confirmed apex bank.
The RTI query was filed by Dharmendra Kumar of India FDI Watch and asked the apex bank to confirm if CoD payment mode and disbursement to e-commerce merchants or marketplaces like Flipkart and Amazon are legal under the Payments and Settlements Systems Act, 2007. BlackBerry KEY 2 Launched in India at Rs 42,990; Sale to start on July 31 Via Amazon.
Under Cash on delivery method, Flipkart, Amazon and other online retailers collect cash from the buyers on third party vendors when the products are delivered.
The bank responded to the RTI query by stating that “aggregators / payment intermediaries like Amazon and Flipkart are not authorised under Section 8 of the PSS (Payments and Settlements Systems) Act, 2007”, reported Economic Times.
(The above story first appeared on LatestLY on Jul 25, 2018 10:05 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).