India's Central bank working on integration between e-commerce firms and banks

Reuters News
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Posted: Apr 20, 2015 10:17 AM

MUMBAI (Reuters) - India's central bank is working on improving the integration between e-commerce firms and the country's banking systems, a deputy governor of the Reserve Bank of India (RBI) said on Monday.

"One area which we will now be looking at very closely, which is emerging, is how to provide integration between e-commerce platforms and banks," Deputy Governor H.R. Khan said at a banking industry event.

India's fast growing e-commerce market is valued at about $12 billion, however most shoppers still pay for their online purchases through cash at the doorstep.

Khan said the central bank is also considering relaxing its requirement for a two-step authentication process for small transactions to make online payments smoother.

(Reporting by Neha Dasgupta, writing by Himank Sharma, editing by David Evans)