E-tailers must settle seller payments in 2 days: RBI

E-tailers must settle seller payments in 2 days: RBI
 BENGALURU: E-commerce players have been mandated to clear payments of merchants within two days of intimation regarding the completion of transaction, the RBI has said in response to a query sent by an online seller. 
The central bank’s response, reviewed by TOI, makes it clear that completion of transaction means the act of making the payment.

Every e-commerce company has its own agreement with sellers about intimation regarding the completion of a transaction. Although typically, it is referred to as date of dispatch.

At present, however, the majority of e-commerce companies take a week to 15 days to settle payments of sellers. Flipkart, for instance, has a 7-12 day cycle for various categories of sellers, including gold and silver retailers.

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Sellers on multiple e-commerce platforms say leading etailers are not settling payments for prepaid orders according to the RBI regulations and they usually take about a week on an average. 

When contacted, an Amazon spokesperson said the company was compliant with the regulations. A Flipkart spokesperson declined to comment.

E-tailers charge a payment collection fee from sellers for both online payments and cash on delivery orders.

Source by gadgetsnow..
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