There is a discussion between RBI and Commerce Ministry to allowe export invoicing in Indian Rupees. This will help in hedging rupees, which is appreciating against major currencies and eroding margin of the exporter. Further government has lowered pre and post-shipment credit to 7.5-8% on the export goods.
Presently the bank charge very high premium for Hedging and covering risk for export and import of goods, which make individual importer and exporter to look for alternative option for international transaction.The PayPal and similar service offered by Yahoo and others offer easy payment method throgh electronic medium.
In India ,the retail banking and e-payment is still evolving. People will continue to use other than merchant account till legally permissible channel become more cost-effective and easy to use. We have to respond quickly to frame rules and regulation to changing technology in the e-Payment system.More important is education to citizen about pros and cons of a particular mode of payment.
