RBI Calls for Greater Ties Between Banks & E-commerce Cos

Mumbai
Our Bureau
Looking at plan to let pre-paid issuers offer rupee card of Rs 2 lakh to NRIs over `
The Reserve Bank of India has called for greater cooperation between banks and ecommerce companies and said it is open to them forming joint ventures with each other and ecommerce firms acting as banking correspondents.“Banks will have to take cognizance of e-commerce the way it is galloping,“ RBI deputy governor HR Khan said while speaking at the launch of the Suvidhaa pre-paid card.

Partnership between banks and e-commerce companies could be on the same lines as the partnership between banks and telecom companies, he said.“Banks will see there is competition and opportunity for cooperation as well with e-commerce firms,“ he said. Banks have tied with several telecom companies to make instantaneous transfer of funds possible. Such tie-ups allow customers to transact through mobile banking. E-commerce transactions have picked up pace in the past year or so with several companies offering steep discounts on online shopping. “We will have to see how we provide a platform between e-commerce and banks,“ Khan further added.

Among other things, Khan said the RBI is considering a proposal to allow pre-paid card issuers to issue rupee cards of over `. 2 lakh to NRIs and foreigners coming to India. As of now, RBI has set a limit of ` .2 lakh that can be loaded on prepaid card issued to foreigners.He said the central bank has also approached the Telecom Regulatory Authority of India to give banking transactions priority over other messages.

He said the Reserve Bank may consider relaxing the current two-factor authentication for small-value transactions but ruled out any plans for doing away with it completely.

“Even Uber has tied up with a pre-paid card issuing company for two-factor authentication,“ he said. Uber has tied with Paytm, and Meru has tied up with Citrus. “We are ahead of other advance countries on twofactor authentication, so we should not slip back,“ he added.

The deputy governor stressed on the need for inter-operatability to derive the benefits of financial inclusion.

“The RBI is considering several proposals, for instance if it is possible for the BC (banking correspondent) of one bank could do the same function for another bank in the same region,“ he said. The Suvidhaa pre-paid card would be issued by Axis Bank in partnership with Suvidhaa Infoserve.

Souce: The Economic Times

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Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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