Cash-on-delivery (CoD) method of payment option provided by 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, according to a report in The Economic Times.
The RBI, in a response to an RTI query, said a collection of payment from platforms such as Amazon and Flipkart are not authorised.
“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 in its response to the query filed by Dharmendra Kumar of India FDI Watch.
India’s online retailing business is estimated to grow by more than 1,200 percent to $200 billion by 2026, according to a Morgan Stanley report. The report estimated that online retail would account for 12 percent of the country’s retail market by then.
source: Money Control.