The Reserve Bank of India has said that it is not averse to banks entering into joint ventures with e-commerce firms for smoother payments or appointing them as business correspondents for acquiring new customers.

Integrating e-commerce with their own platforms will allow banks to work around the two-factor authentication requirement while doing transactions.

Always Seek Knowledge:

• RBI has asked the Telecom Regulatory Authority of India (Trai) to give priority to banking transaction over others while messaging
•  The central bank has also asked Trai to bring down the present fee of Rs 1.50 per banking transaction using the *99# Unstructured Supplementary Service Data messaging service.
• 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. 
• RBI has set a limit of Rs 2 lakh that can be loaded on prepaid card issued to foreigners.
• Banks have tied with several telecom companies to make instantaneous transfer of funds possible. Such tie-ups allow customers to transact through mobile banking.
• The Suvidhaa pre-paid card would be issued by Axis Bank in partnership with Suvidhaa Infoserve.

” E-commerce sites and banks need to integrate and that is something in interest of everyone. We have not hit upon a plan but we will allow the market to develop and wherever there is a need of nudge from our side, we will do that,” said H R Khan.