Uber Terms Reserve Bank of India Rules ‘unfriendly’, but Says Will Comply
Tuesday, December 2, 2014
Taxi hailing service Uber sharply criticized Indian rules that require two-step authentication of credit card transactions and sought 45 more days to comply with the central bank’s directive on the issue.
On the backfoot after the Reserve Bank of India said customers could not be charged directly on their credit cards, Uber tied up earlier this month with mobile wallet provider Paytm but is complaining that the two-factor authentication is a sub-optimal way of doing business.
“While this requirement is intended to provide more security for consumers, it is an antiquated solution that is cumbersome for consumers and stifling for businesses across India,” the company said in a blog post.
“We are going to comply with the norms. While its expensive and hard on us as it hurts the riders and partner drivers, we wanted to do the right thing,” said Eric Alexander, head of business at Uber Asia.
Uber, in its blog post, described the requirement of two-factor authentication as “unnecessary and burdensome,” but said it had “constructive discussions” with the RBI and is “committed to working with the Indian government to advance regulations that support innovation and job creation.”