Uber India’s tussle with RBI ends today as the company has shifted to Paytm-only, i.e. wallet only option.
“Starting today, December 1st, you will no longer be able to request a ride using your India issued Credit Card directly through the app. For those holding an Indian credit card, the Paytm Wallet will be the only payment method available.
India’s current regulations require every transaction made with an Indian credit card, no matter how small the amount, to include two-factor authentication (2FA). “
Ofcourse, you can use the credit card option for rides taken outside India.
Uber’s Candid Note on RBI Policies
India is one of the largest market for Uber and the company isn’t going to let off the compliance issue so easily. In an official blogpost, the company has gone UnPluggd and has taken a shot at RBI for its policies.
Despite consumer preference and in the face of rapidly changing business expectations, India’s one-of-a-kind 2FA requirement persists, causing a major challenge for businesses trying to offer Indian consumers a better purchasing experience.
While we believe this requirement is unnecessary and burdensome, we have engaged in constructive discussions with the RBI and are committed to working with the Indian government to advance regulations that support innovation and job creation.
What’s next for Uber to solve? The service tax issue.