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Cash-On-Delivery Not Authorised

Cash-On-Delivery Not Authorised

Age of Online shopping
In today’s era, online retailers have taken up a large proportion of the market. Not only is
everything available on the online market, it is also found at a much cheaper rate and with
numerous discounts as well as offers. This is why the focus of various customers has shifted
from the offline retail stores to online ones. This is because customers find the factor of
convenience when it comes to online retail stores. This is because they find everything
under one platform. This saves time as well as the energy to actually go to an offline retail
store and go through all the clothes that are available there.

Ease Of Online Shopping
Online markets also provide the convenience of getting the clothes delivered to your
doorstep with a single touch. The mode of payment can also be selected according to one's
convenience. However, there have been various controversies relating to the mode of
payment used by online retailers in today's online market. As the Government is in a
desperate attempt to prevent black money, the method of cash-on-delivery is something
which comes in the way of that. This is because of the very fact that the cash received
cannot be tracked in any way.

Issues with COD
According to the RBI, the cash-on-delivery method of payment options lies in the regulatory
grey areas. This is because the Government has no track of how much cash is actually being
received when the product is being given to the particular customer. When a card
transaction is being done, it records the amount that comes and a receipt is generated. This
is in contradiction to a cash transaction where the only proof is the word of mouth of the
delivery person or the online retailer. This provides a chance for speculation. This is not the
only reason why cash-on-delivery is considered as a grey area. It is also the fact that the
cash-on-delivery method is the easiest way for customers to convert their black money. By
ordering through online portals, one can easily use the black money that he or she
possesses to pay off for such items. This is because this calls for no doubt as no proof will be
available that that indeed is black money.

Decisions To Be Taken By RBI
A person looking to hide his black money or run away from a certain scam relating to black
money can easily pay it off using this cash-on-delivery payment option. Thus, the RBI is
skeptical about this method. It is still under consideration whether it is completely
authorized or not. This matter was brought up by a Right to Information query where it was
questioned about how and when the money is being received through this particular mode
of payment being tracked. Another factor is that a lot of people are included in the process.
This implies towards all the people starting right from the seller to the intermediaries to the
customers who are involved in this long process. The frequency with which the money
changes hands is something which cannot be tracked through this process. The actual cash
going out and the actual cash coming in can never really be accounted for during this entire
process.

However, the Reserve Bank of India (RBI) has not issued any instructions regarding
this particular matter yet. This is still being taken into consideration in accordance with the
rules and regulations along with the law. This will be a major setback for e-commerce giants
like Amazon and Flipkart as they heavily rely on the cash-on-delivery method of payment.
Statistics have shown that the cash-on-delivery payments account for about 50% of their
total payments received. However, it is controversial and is still being taken into
consideration so as to find the best possible solution for the online markets as well as the
Government.

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