31 August, 2014

Uber has the attention of RBI

What actually transpired? Uber in its enthusiasm to make payment a passenger-friendly transaction had put some basic structure in place. For instance, when someone uses a Uber cab, he/she can pay using a credit card. And all payments are processed directly using the customer's stored credit card information, bypassing any monetary exchange between drivers and passengers. 

Uber gets a decent cut of 20% from the earnings per transaction. With the stored information of a customer's credit card, there is a standing instruction to deduct money from the card for every usage approved by the cardholder who uses Uber's cab services. And for its processing, Uber uses international gateway to complete the transaction, thus bypassing the rules by RBI.

RBI put its foot down on Uber's payment mode and said the company has time only till Oct 31 to mend its ways or leave the country.