RBI for JV between banks, e-com firms

Reported by: |Updated: April 21, 2014

The Reserve Bank of India said banks should explore the scope of having joint venture with e-commerce companies so that payment issues for e-commerce business can be sorted out. Besides, e-commerce firms can function as business correspondents for acquiring new customers. The RBI feels integrating e-commerce with banks’ own platforms will allow them to work around the two-factor authentication requirement while doing transactions. The views were expressed by deputy governor H.R. Khan at a function launchign the Suvidhaa prepaid card of Axis Bank. He said there is a need to use multiple instruments to promote banking. Elaborating, he said the e-commerce space is galloping at such a fast pace that it needs to be taken into considertion. He said that although RBI does not have any particular model for partnerships, both could work together to facilitate payments on e-commerce sites.