Uber remains quiet about RBI's directive to start two step payment verification system.
RBI has issued an order that requires Uber to introduce two-step payments in India by 31st October or risk shutting down its operations.
RBI did not specifically address any company in its directive by stated that "it has come to our notice" cases in which domestic credit card transactions avoided the additional verification process by using an overseas payment system. RBI noted that companies would have until Oct. 31 to implement the two-step verification process and stated that payments must be routed through a domestic bank and settled in Indian rupees.
"It is advised that entities adopting such practices leading to willful non-adherence and violation of extant instructions should immediately put a stop to such arrangements," the RBI said in a circular.
Uber's draw is the complete hassle-free payment system, wherein your card is charged when you leave the cab, without any monetary exchange between drivers and users. If the company is forced to implement the change it will definitely loose some of its appeal. Uber has declined to comment on the news.
According to reports, the announcement came after local taxi companies complained that Uber was not following the two-step verification process required for credit card transactions in India. This move will benefit local cab companies like Meru and Ola in the short term.
In a blog post, Siddhartha Pahwa, CEO, Meru Cabs, writes: "We welcome RBI's circular to protect the consumer from fraud possibilities and create a level playing field between domestic and international companies. However, providing a smooth consumer experience has been paramount objective for us and we believe mobile payments have to become much more hassle free for it to be popular in a big way."
CERT-In recently warned users warns about debit/credit card information stealing BrutPOS virus which attacks Point of Sale (POS) business counters to steal confidential data like card number and passwords. India sees over 100 million debit and credit card transactions on Point of Sale (POS) devices which amounts to Rs20,000 crore. In 2012 nearly Rs 52 crore were lost due to credit card, debit card and internet frauds in the country.
Source: TNW
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Silky Malhotra
Silky Malhotra loves learning about new technology, gadgets, and more. When she isn’t writing, she is usually found reading, watching Netflix, gardening, travelling, or trying out new cuisines. View Full Profile
