Tuesday, 9 October 2012

RBI open to raising cap on global e-commerce deals

The Reserve Bank of India (RBI) is open to looking at increasing the limit on international e-commerce transactions now set at $3,000, a top official said on October 8.
“If the system wants the limit to be enhanced, that is something that we are positively inclined to look at,” RBI Executive Director G. Padmanabhan said on the sidelines of a CII event.
Mr. Padmanabhan said the limit was set in consultation with PayPal, a major player among the international payment gateways, and added that as many as 99 per cent of the e-commerce transactions fell under the limit of $3,000.

Rationale

Giving rationale for setting the limit (there are no limits for domestic e-commerce transactions), he said it was needed in a country like India which had exchange controls.
On extending trading hours in the forex market, the RBI official said it was difficult to relax as “we do not have full capital account convertibility.”

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