common, all RBI wants is the service provider to settle money in India if paid by Indian customer to an Indian Customer. What uber is doing is using a different gateway to take money and different country bank to settle the same.

Also the requirement of 2 factor authentication is there for all CNP (Card not present) transaction, you need to understand that the number of fraud which is detected due to international transaction is rising and it becomes very difficult for individuals to process the chargeback. I was victim of card theft used to do international transaction on some random site.

I like this decision, and Uber can use a card reader on the device like Square in India or Pre paid wallet.