Car Rentals Get 24/7 Support, Fewer Rules

India's Ministry of Road Transport and Highways is set to overhaul car rental regulations with the draft Rent-A-Cab Scheme, 2026, replacing the outdated 1989 framework. This proposed scheme mandates rental companies to provide round-the-clock telephone customer care and resolve online complaints within 24 hours. A seven-day inquiry period is allocated for driver-related violations. Rental vehicles must now be less than nine years old, equipped with location trackers and first-aid kits, and must be able to accommodate child restraints.

Aspiring rental businesses will find it easier to enter the market, with the minimum requirement reduced from 50 cars to just five. The need to maintain branches in five tourist cities will also be eliminated, with approved operating locations to include airports and railway stations. Transport authorities will have 60 days to process license applications, with penalties for non-compliance. Businesses and renters can submit their suggestions until December 5, 2026, before the final rules are notified, with a proposed start date of January 1, 2027.