In an apparent reference to Uber, Finance Minister Arun Jaitley today said the private taxi firm was found in violation of payment system norms as the "gateway" was outside the country but subsequent media reports suggested that it has now put a local mechanism in place.
Jaitley made the reference in the Lok Sabha while talking about the need for having a strong payment system.
"In a private transaction, just as for instance today, this radio taxi service controversy is going on. How does a consumer pay for these radio taxies which are currently in controversy? These are not governmental transactions or banking transactions," he said while moving for consideration the Payment and Settlement Systems (Amendment) Bill, 2014.
"Now a violation was discovered that the payment gateway was outside India. So the RBI told them to bring it within India. So from December 1 this year, it appeared in the newspapers that Paytm, a local wallet, has been created by one of these companies, which is in controversy," he said
US-based Uber is at the centre of a storm following the alleged rape committed by a driver registered with it.
Uber had faced issues with its payment system. Following Reserve Bank of India's direction, the company has now complied with the norms.
The company had run into regulatory hurdles with the RBI after the latter raised concerns about Uber's payment system including its authentication process.
Yesterday RBI Deputy Governor H R Khan said it had given Uber time till November 30 to comply with the norms and now they are in compliance.
