'E-commerce firms might be allowed to tie up with banks'

RBI is in the process of vetting the applications for payments bank, which will be awarded within the next few months

Very soon, commercial banks and e-commerce firms such as Flipkart and Amazon could share their platforms to serve the vast population of the country, as the banking regulator is exploring the opportunity for such collaboration.

"E-commerce is galloping at a fast pace. You have to take cognisance of that," said HR Khan, deputy governor, Reserve Bank of India (RBI) at an event.

Citing the example of recent RBI norms which allowed payments banks to function as business correspondents of banks, Khan said there could be an arrangement in which both the parties shared each others' platform.

When asked if e-commerce firms would be allowed to function as business correspondent of banks or will be allowed to form joint ventures with banks, Khan said, "We are not averse to the idea."

RBI has allowed telecom players to form joint ventures with banks for payments banks. It is in the process of vetting the applications for payments bank, which will be awarded within the next few months.

Khan was speaking at an event at which Axis Bank announced its partnership with Suvidhaa Infoserve to launch the Axis Bank-Suvidhaa Prepaid Card which leverages the e-Know Your Customer (eKYC) platform for instant on-boarding, cash deposit and withdrawal for the customer.