Government Proposes Major Changes to Cab Rental Regulations, Expanding Options for Customers
The Indian government plans to revise cab rental rules, enhancing customer safety and increasing options for operators and consumers alike.

New Delhi, November 13 (Daily Kiran) : The Indian government has proposed significant changes to the cab rental regulations in the country, aiming to simplify operations for businesses while enhancing customer safety. An official statement from the Ministry of Road Transport and Highways outlined these changes.
The proposed framework introduces streamlined processes and improved customer support, making it easier for new operators to enter the cab rental market. This move is expected to provide consumers with a wider array of choices.
Under the new guidelines, operators may have the option to provide cabs with or without drivers. The minimum fleet requirement has been reduced from 50 to just 5, with at least 2 cabs required at each operating location. Additionally, the mandate to establish branches in five tourist cities may also be eliminated.
The ministry indicated that a single license, valid across an entire state or union territory, would replace the need for separate primary and branch licenses. Approved operating locations may include airports, train stations, and bus terminals.
The new framework proposes that the issuance and renewal of licenses should be completed within 60 days. There may also be a ‘deemed approval’ system allowing for the addition or removal of cabs or operating locations within 30 days.
To ease compliance and reduce paperwork, an electronic vehicle register and automatic data retrieval are proposed.
The ministry stated that cabs must be equipped with location tracking, optional child restraint systems, and first-aid kits. Operators will also need to provide a website, a 24-hour grievance redressal service, and emergency repair and towing assistance.
Importantly, drivers employed by operators must undergo police verification. The welfare of these drivers will be monitored under the Social Security Code, 2020. In cases of serious crimes linked to a cab or its driver, the operator’s license may be suspended.
Furthermore, the government plans to give operators a chance to rectify minor deficiencies before suspending or revoking licenses. An electronic appeal process is also expected to be implemented.



