RBI cautions public against using car pooling app sRide

Reserve bank of India (RBI) has cautioned the public against carpooling app sRide. The caution against sRide App, stating that this firm was operating a semi-closed pre-paid instrument, without receiving authorization from the central bank, under Payment and Settlement Systems Act, 2007.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

Why RBI caution against sRide App?

sRide Tech Private Limited is a registered company, with a registered office in Gurgaon, Haryana. This company is operating a semi-closed (non-closed) pre-paid instrument (wallet) through its ‘sRide’ carpooling app. Thus, RBI cautioned that persons dealing with the app will be doing at their own risk.

About the “sRide” App

sRide app is a carpooling mobile application, that connects people within the community to share rides. The app help users in sharing the cost of travel, increasing mobility, reducing travel time, and building communities. The app also helps in using existing infrastructure, reducing parking needs, traffic and emissions for cities and organisations.

What is Payment and settlement systems in India?

In India, payment and settlement systems are used for financial transactions. They are covered under Payment and Settlement Systems Act, 2007 (PSS Act), Reserve Bank of India and Board for Regulation & Supervision of Payment & Settlement Systems regulate it. India has multiple payments and settlement systems, including gross and net settlement systems.

Find More Banking News Here