RBI cautions people against Car pool mobile app sRide: Know the reason why?

Recently, the RBI has issued a warning against the carpooling mobile application, sRide. The RBI has stated that, the above application has been working without proper authorization from the bank.

The RBI has issued notification caution the people against sRide carpooling app, it has said, that the tech firm provides a semi-closed (non-closed) pre-paid instrument(wallet) services without authorization from the central bank.

In its official statement, the RBI stated, it has come to the notice of the Reserve bank of India that sRide Tech private Limited, it is a company having its registered office at 1201, Tower-7, close North, Nirvana sector-50, Gurgaon, Haryana. It is operating a semi-closed prepaid instrument(wallet) through its car-pooling app(application) sRide without obtaining the needed authorization from the RBI under the provision of the payment and settlement systems act 2007. As such, the individuals dealing with sRide Tech private limited, they would be doing so at their own risk.

The bank has further urged public to exercise utmost caution while using these applications, dealing with and before parting with their money to any such unauthorized entity.

RBI stated, in their own interest, members of the public must verify and also satisfy themselves that the application used or the entity they are dealing with is authorized to carry out the activity it performs or assures to perform.

In the RBI website, one can find the list of authorized payment system providers/authorized payment system operators.

This has come, when the popularity of the carpooling and ride-sharing applications in India is through the rood. Carpooling application usually connects to the riders who are going to a nearby or same location, thus offering an environment-friendly as well as cost-efficient way of travelling.