Indian central bank works to integrate e-commerce firms and banks

MUMBAI (Reuters) – India’s central bank is working to improve the integration of e-commerce firms with the country’s banking system, the deputy governor of the Reserve Bank of India (RBI) said on Monday.

“One of the areas that we are now looking at very closely, that is emerging, is how do we provide integration between e-commerce platforms and banks,” Deputy Governor HR Khan said at a banking industry event.

India’s rapidly growing e-commerce market is worth about $12 billion, yet most shoppers still pay for their online purchases with cash at the door.

Khan said the central bank is also considering easing the requirement for a two-step authentication process for small transactions to streamline online payments.

(Reporting by Neha Dasgupta, text by Himanek Sharma, editing by David Evans)