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Uber Technologies Inc. said it has been granted a monthlong extension by India’s central bank to migrate to a new payment method to comply with rules in the nation.
The Reserve Bank of India has granted the maker of the ride-hailing application until Nov. 30 to move to a new payment mechanism, San Francisco-based Uber said in an e-mailed statement. In August, the central bank had said all transactions involving credit cards issued in India for goods or services in the country must have an additional authentication system at each point of sale.
Uber, which landed a $17 billion valuation in its last funding round, would have to change its application to add an additional level of authentication or adopt a different model to comply with the rules. Some companies had evaded local card security rules by “camouflaging” transactions using an overseas payment system, even though both the customer and the service provider are residents in India, the central bank had said, giving companies until Oct. 31 to comply.
“Uber is working closely with the RBI to address payment process requirements,” the company said. The central bank has given Uber an extension “to give us sufficient time to migrate to a new payment mechanism, and ensure that consumers enjoy uninterrupted use of our technology platform.”
Alpana Killawala, RBI spokeswoman, didn’t immediately respond to a call to her office and to an e-mail seeking confirmation.
Uber offers its services in 10 cities in India, its largest market outside of the U.S. by number of cities.
Apps on mobile phones to book taxis in India has attracted investor interests. SoftBank Corp., the Japanese telecommunications company, said this week one of its units will invest $210 million in ANI Technologies Pvt., which runs the Uber rival-Ola Cabs taxi booking service.
To contact the reporters on this story: Serena Saitto in New York at firstname.lastname@example.org; Siddharth Philip in Mumbai at email@example.com To contact the editors responsible for this story: Chua Kong Ho at firstname.lastname@example.org Subramaniam Sharma, Garry Smith