e-Tailers are mandated to clear merchant’s payment within two days

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, 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 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 of instance, has a 7-12 day cycle for various categories of sellers, including gold and silver retailers.

Sellers on Multiple e-commerce platforms say leading e-tailers 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 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.

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