Online cab service Uber, which recently exclusively integrated Paytm’s prepaid wallet with its service, has pitched for a 45-day extension of the deadline to comply with the Reserve Bank of India’s online payments rules.
Last month, RBI had extended the deadline by which Uber had to comply with its two-factor authentication rules, from the 31st of October to the 30th of November.
Now Uber has said that an additional 45-day extension would provide its existing riders sufficient time to switch over to the Paytm wallet powered payment system. The company has said that this additional grace period will ensure that consumers aren’t disadvantaged & will protect Uber’s partner-drivers from sudden drop in volume of business.
In August this year, RBI had mandated that businesses that route online billing internationally, for goods and services purchased online using Indian cards, need to include a second factor of authentication and route transactions through a bank in India. This directive by RBI came after Meru Cabs had asked the regulator to extend its recurring billing guidelines to foreign players as well, thereby creating a level playing field among domestic and International players.
To comply with the RBI guidelines, Uber had reportedly entered into talks with mobile-only marketplace and digital wallet service Paytm and online payment gateway PayU to integrate a digital wallet with Uber’s payment process in September this year. Last month, it finalised a deal with Paytm.
Cab services launching prepaid wallets: Bangalore-based online cab booking service TaxiForSure had launched its own in-app prepaid wallet to offer cashless taxi rides, last month. Olacabs and Meru Cabs had also launched in-app prepaid wallets in October, enabling users to recharge wallets and then use it to pay for taxi rides.