The Reserve Bank of India (RBI), while replying to query made through an RTI application, has clarified that the Cash -on-delivery method of payment option provided by online retailers such as Flipkart and Amazon may be a regulatory grey areas, ET reported.
The RBI’s move to crack down black money likely to be a setback for the E-Commerce giants such as Flipkart and Amazon etc.
In the RTI, a query was raised from the RBI to confirm whether the cash-on-delivery payment mode is under the Payments and Settlements Systems Act, 2007? While the Act conspicuously mentions the electronic and online payment modes, it does not explicitly mention about money received through the cash-on-delivery route.
“Aggregators/payment intermediaries like Amazon and Flipkart are not authorised under Section 8 of the PSS (Payments and Settlements Systems) Act, 2007,” the apex bank said.
It is believed that COD is the easiest way to convert tainted money by purchasing goods from e-portals.
