New Delhi, November 13, 2026 (Yes Punjab News)
The Centre has proposed a series of reforms to simplify the cab rental business, lower entry barriers for operators and expand choices for customers, while strengthening passenger safety and grievance redressal mechanisms.
The proposed framework, put forward by the Ministry of Road Transport and Highways, seeks to make licensing and compliance easier, particularly for smaller businesses entering the sector.
One of the key changes is a proposed reduction in the minimum fleet requirement from 50 vehicles to just five. Operators would be required to maintain at least two cabs at each place of operation. The existing requirement to establish branches in five tourist cities may also be removed.
The framework would allow operators to offer rental vehicles both with and without drivers, giving customers greater flexibility.
The ministry has also proposed replacing separate main and branch licences with a single licence valid across an entire state or Union Territory for a uniform fee. Approved operating locations could include airports, railway stations and bus terminals.
To speed up regulatory procedures, licence applications and renewals would be processed within 60 days. A deemed-approval mechanism after 30 days is proposed for requests to add or remove vehicles or operating locations.
The use of electronic VAHAN registers and automatic retrieval of vehicle-related information is expected to reduce paperwork and simplify compliance.
Passenger safety and service standards form another part of the proposed reforms. Rental cabs would be required to have location-tracking systems and first-aid kits, while child restraint systems would be optional. Operators would also need to maintain a website, provide 24-hour grievance support and arrange emergency repairs and towing services.
Drivers provided by operators would be subject to police verification and welfare provisions under the Code on Social Security, 2020. The ministry has also proposed provisions under which specified serious offences involving a cab or an operator-provided driver could affect the validity of the operator’s licence.
The proposed framework includes safeguards for businesses as well. Operators would be given an opportunity to rectify non-material violations before suspension or cancellation of their licences is considered. An appellate mechanism, including electronic hearings, is also envisaged.
The proposed changes are intended to make cab rentals more accessible to customers while encouraging smaller businesses, supporting employment and improving service standards.
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