Cash On Delivery: A Channel For Black Money

Cash on delivery is a mode of transaction in which the payment for goods is made at the time of delivery of goods and the e-commerce players collect cash from customers on behalf of third party vendors at the time goods are delivered instead of demanding online payment at the time of placing the order. It amounts to 70% of the overall e-commerce business transactions which suggests that the amount of illicit cash in the system is overflowing under the eyes of the government and going unnoticed. In an effort to increase the digital push by the Indian Government, the online payment systems have been gaining popularity, with Unified Payments Interface (UPI) already crossing a 300 million transaction limit. However, even after these efforts, the government has been unable to curb the dominance of cash on delivery payment mode in the economy.