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Ask HN: What is wrong with Reserve Bank of India?

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Re: Ask HN: What is wrong with Reserve Bank of India?

#51

Post by ziikutv »

I do agree that this is some what of "babu" type mentality but there have to be fundamental changes in the structure/process of computer usage in India. For example, the security measures that can be taken by RBI can easily be worked around as most people go to CyberCafe's to use computers. Not many people own computers. The people running the said CyberCafe's have little to no awareness of what is going on in there. It's not very hard to bypass the anti-virus to insert keyloggers.

To make matters worse, some people simply go to the cybercafe owner and have him fill out all the forms and information as they do not know English. I have also seen one couple giving their CC information to the owner and the owner purchased something via Flipkart.

Re: Ask HN: What is wrong with Reserve Bank of India?

#52

Post by jeyaganeshn »

testbeta wrote: post #22

Tell me about it! It's not just the RBI, every nook and cranny of Indian politics and bureaucracy is laden with such mentality, the only thing they know is strangle the bottlenecks, it is ridiculous! I can't pay Aliexpress because they don't go along with paypal so well, for whatever reason, credit card transactions are declined everytime, because of the RBI's strangling policies, and this is with the leading nationa…

Aliexpress: I was able to do it via my Visa debit card.

Re: Ask HN: What is wrong with Reserve Bank of India?

#53

Post by testbeta »

jeyaganeshn wrote: post #52
testbeta wrote: post #22

Tell me about it! It's not just the RBI, every nook and cranny of Indian politics and bureaucracy is laden with such mentality, the only thing they know is strangle the bottlenecks, it is ridiculous! I can't pay Aliexpress because they don't go along with paypal so well, for whatever reason, credit card transactions are declined everytime, because of the RBI's strangling policies, and this is with the leading nationa…

Aliexpress: I was able to do it via my Visa debit card.

They don't accept debit cards anymore.

Re: Ask HN: What is wrong with Reserve Bank of India?

#54

Post by MichaelGG »

icebraining wrote: post #26
balladeer wrote: post #15

> Because certain people used to evade tax by purchasing goods directly with their Paypal balance. So, instead of catching the tax evaders the RBI found it easier to ban the whole thing. PayPal wasn't helping in catching certain people either - or wasn't willing to come under the ambit of Indian banking/taxation rules. Besides how do you think one can "catch" certain people without actually enforcing some rules that…

I agree, as an European not used to dealing with them before the Internet, the system is just inane nowadays. "Just give these numbers to each and every merchant you do business with, and trust they won't abuse or leak them. Remember that you have to check each and every transaction to make sure it's not fraudulent, and have fun paying higher prices because merchants get hit with billions in fraud every year". Our sy…

The US system of authenticating the transaction vs the card/user seems to work pretty well. The US rapidly adopted online commerce and payment. Consumers, overall, have nothing to worry about. Since the merchants and banks are responsible for fraud on credit cards, they seem to be a bit more on to of things.

N=1, but with Wells Fargo, my credit card gets blocked now and then due to suspected fraud. Once it was due to a cloned card being used. Bit of an annoyance getting a new card (they're no Amex, who'd always overnight me a card, no matter where I was), but otherwise I had zero financial worry. Compare to my debit card. Not one have I even revived a warning about it, let alone a block. Even when I gave it to someone to use and take cash out on in another country.

EU and others seem to be rushing to implement strong auth, but as a consumer, screw that. Use machine learning and law enforcement to deal with it and let my experiences be unencumbered. Spending 2 minutes to authorize merchants seems like a large annoyance.

Re: Ask HN: What is wrong with Reserve Bank of India?

#55

Post by anupshinde »

Look into the details, it is perfectly reasonable to protect the customer. I started complaining myself when I found it was so difficult here.

I see RBI Governor is competitive and responsible enough (and better than many other developed-country's central-bank governors)

As far as Uber's case goes - they used a work-around to bypass the restriction. It is unethical and illegal to do so. Many other Indian startups are also trying to do the same - and they must stop working around RBI rules.

Re: Ask HN: What is wrong with Reserve Bank of India?

#57

Post by wcummings »

BronSteeDiam wrote: post #35
twilightfog wrote: post #32

Earlier quoted context omitted.

After a search, I see that companies need to obtain the necessary clearances from RBI (Indian or international) to charge recurring payments on credit cards. These are only granted to businesses with established track records. So, yes, a SaaS startup might not qualify for it. But as a consumer, I'm actually happy with this RBI policy.

You're happy to have no SaaS startups? Do you think there might be an alternative solution, that doesn't through the baby out with the bath water?

You can have SaaS startups w/o recurring CC payments.

Re: Ask HN: What is wrong with Reserve Bank of India?

#58

Post by chernevik »

kazinator wrote: post #40
driverdan wrote: post #34

Earlier quoted context omitted.

> Credit card fraud raises national debt, makes your economy reliant on derivatives such as insurance and in the end you fall down. That's not how credit cards work. Credit card fraud is never shouldered by the country, only the banks and stores that fall victim to it. There's no insurance involved, it's a cost of accepting credit cards. > Also SaaS has nothing to do with recurring CC. Don't you use postpaid services…

> Credit card fraud is never shouldered by the country, only the banks and stores that fall victim to it. That's a little near-sighted, I'm afraid. You don't think banks have a way to sock their debt to countries? Heck, individuals do. On my income tax form here, there is a write-off field where I can put in losses from investments and such.

Only as nets against investment gains.

Re: Ask HN: What is wrong with Reserve Bank of India?

#59

Post by scotty79 »

Tarang wrote: post #29
scotty79 wrote: post #28

Earlier quoted context omitted.

Recurrent payments make possible softer kinds of frauds where you extract money from people for services they don't need or use only because they forgot they ordered them or can't be bothered to cancel.

If its a fraud its a fraud you can get your money back. There's a difference between being cheated and wanting the service & being willing to pay for it. I might point out on Paypal you get an email every time a charge is done and you can easily cancel any subscription in under a minute quite easily so you wont forget about anything. Direct Debit (such as that offered by HDFC, Axis, etc) can also do the same thing, a…

I still prefer to pay up front. At least I need to carefully consider if I actually want the service.

I heard a lot of stories how hard is to get out of gym membership. If someone uses tricks in my psychology to make me pay for the service I don't use I consider it to be a scam. Visa might think otherwise.

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