MUMBAI Aug 23 India's central bank said that
all transactions involving domestic credit cards must follow
rules requiring additional verification, a stance that could
impact companies such as Uber Technologies Inc that provide more
simple app-based purchases.
The announcement on Friday comes after local taxi companies
had complained that Uber was not following the two-step
verification process required for credit card transactions in
India, according to media reports.
All Uber payments are directly processed using the
customer's stored credit card information in a simple process
that bypasses any monetary exchange between drivers and users.
Although the RBI did not specifically address any company,
it noted "it has come to our notice" cases in which domestic
credit card transactions avoided the additional verification
process by using an overseas payment system.
The RBI noted companies would have until Oct. 31 to ensure
the two-step verification process was being followed, while
noting that payments must be routed through a domestic bank and
settled in Indian rupees.
"It is advised that entities adopting such practices leading
to wilful non-adherence and violation of extant instructions
should immediately put a stop to such arrangements," the RBI
said in a circular.
San Francisco-based Uber did not immediately respond to an
e-mail from Reuters seeking comment.
(Reporting by Indulal PM; Editing by Nick Macfie)