The Reserve Bank of India has ruled that all electronic and online purchases initiated in India must settle within two days.

The bank also ruled that all payments to merchants not involving funds transfers to nodal banks must be done within two days from the time of the transaction, and those that involve funds transfers to banks must be done within three days.

The central bank ordered banks to convert existing accounts used to collect payments for electronic transactions into internal accounts within three months.

In India, banks credit consumers' e-commerce transactions and mobile and bill payments to the accounts of intermediaries, which then transfer the funds to merchant accounts upon settlement.