RBI: Online transactions should be processed in INR only

[Sushubh]

RBI says online transactions using credit cards should be in rupee; Google, Amazon likely to be hit - Financial Express

Are they serious? How do I shop on an online service that has no Indian connection?

The Reserve Bank of India on Friday said that settlement of transactions using credit cards online, also known as card not present transactions, for purchase of goods and services within the country will have to be done through a bank in India and the payments must be made in rupee.
The move by the RBI might hurt e-commerce platforms and taxi aggregators such as Google Play, Amazon and Uber as these companies route credit card transactions through an international payment gateway and circumvent the two-step verification mandated by the RBI.

 

[kickass]

this will pretty much put an end to any online purchasing. Hardly any website does the authentication validation 2 step thingy. is that what it says?

 

[uumeshh]

It's for companies operating from India I guess. They need to work with Indian gateway with 2 factor authentication

 

[amish]

I think for VISA / Mastercard transactions it should not be problem.

Their gateway should take care of that.(Even on foreign websites)

They simply multiply by current exchange rate for displaying the figure. Buyer will pay using rupee, seller will get in dollars.

I think good move as it will make Indian rupee strong. Buyers should not have problem if gateway takes care of it.

For e.g Google playstore already allows you to pay in rupees.

 

[Sushubh]

Riding on Uber is set to become ultra complicated. I am not sure how they can process OTP with riders... What if the user does not enter the code after the ride is over?

 

[Sushubh]

Uber effects? : RBI cracks down on use of foreign payment gateways | Arkay & Arkay, Chartered Accountants

So there are some exemptions that might help the affected companies. But knowing how our government likes to operate the exemptions might disappear.

 

---

[bajechele]

I donate $5 to link-removed sometimes. it is paid through credit card with no validation or 3d secure code..how will i do that if this implements? :?

 

[Sushubh]

Turned out I did not read the thing properly. RBI is only talking about payments that are made for services consumed within the country. Like paying for rides on Uber (which seems to be the focus here as rival cab companies have apparently complained) and of course buying apps through Google Play/Apple App Store/Amazon AppStore.

Paying for services that have no connectivity to India are not affected at all.

 

[bajechele]

ok

 

[Sushubh]

So basically if HostGator and other hosting companies now operating from within India are using their international gateway for their hosting services here in India... It would be a problem. But I think most of them are using local gateways already. GoDaddy for example uses a local gateway if you do your shopping from their Indian domain. Though I still can go to their international website and use their international gateway that does not ask for OTP.