Uber has announced that it is once again accepting credit card payments in India, stating that its Android app now conforms to the two-factor authentication guidelines set forth by India's banking regulatory body, the Reserve Bank of India.

Late last year, the RBI called for a ban on Uber's services on grounds of non-compliance with the two-factor authentication mandatory for all digital transactions carried out in the country. Uber then announced a deal with Indian digital wallet service Paytm, through which riders were able to link their debit and credit cards via Paytm. The integration — while functional — was cumbersome as it meant that users had to add funds to Paytm's digital wallet before hailing a cab.

RBI guidelines state that all transactions carried out digitally should come with a secondary layer of authentication, which is usually a pre-defined password set by the user or a one-time password delivered via SMS. The secondary layer of authentication allows for greater security in the event of card theft.

Uber is now tying up with payment processing service MobiKwik to handle two-factor authentication credit card transactions in the country. The feature is available to Android users starting today, with iOS integration rolling out "in the coming weeks." In addition, Uber is trialling cash payments in Hyderabad across price tiers.