Status of E-trading in India

Posted Date: 30-May-2010	Category: Education
Author: Kiran Kumar	Member Level: Diamond	Points: 15

Status of E-trading in India, Rupee Not Ready, Banking System Not Ready, Laws of land is Not Ready, Infrastructure Not Ready, VSNL, NIC, GlobalTelecomm System, E-Trading, Banking system

Status of E-trading in India

The magic trading which is supposedly possible through the machanism of E-Trading is a long way to maerialize. First of all; it is has not spread its wing on the indian soils. In fact, there are lots of practical limitations for the E-Trading to gain mementum.

Rupee Not Ready

In fact the basic requirements for the working of E-Trading is the full convertibility of rupee. Unfortunately, the Indian rupees is yet to become fully convertable. This is a single most crucial handicap facing the global electronic trading by companies in India. In India, altough electronic funds transfer take place, this is done within the frontiers of the country.

Banking System Not Ready

Banking system is not prepared to faciliate the working of global trading. Since banks occupy a pivotal role in the machanism of international trade. It is imporatant that they must be position to faciliate the electronic and paperless trade at the global level.

Laws of land is Not Ready

The existing legistlations governing the e- banking operations require the recording and presentation of evidance of payments in physical form. These laws such as laws of evidance, criminal laws, the central excise and direct tax laws do not recognoze completely the electronic funds espacially at global level.

Infrastructure Not Ready

Although, Reserve Bank of India is commited in providing excellence in banking services by way of adopting e-banking or e-commerce facilities but adequate step have not yet been taken to create, maintain and strengthen the infrastructure like international communication facilities. In fact the facilities just sufficient to carry international business through paper baised system. in this connections, it is to be noted that the initiative taken by some enterprises in India such as VSNL, NIC, GlobalTelecomm System are laudable.

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