Domicile Rule for Bike Taxi Drivers: Maharashtra's New August 1 Policy Explained
Starting August 1, Maharashtra will legalise app-based bike taxis under a new regulatory framework. Aiming to legalise 4-4.5 lakh unauthorised services, the policy mandates a Maharashtra domicile certificate for drivers and introduces an INR 5 per-ride fee plus a 2 per cent welfare fund contribution to ensure oversight and social security for operators.
The Maharashtra government has announced that it will legalise the operation of app-based bike taxis across the state starting August 1. The move aims to bring an estimated 4 to 4.5 lakh unauthorised bike taxis under a structured regulatory framework, ensuring better passenger safety, revenue generation, and job opportunities for local youth.
New Regulatory Framework
Transport Minister Pratap Sarnaik announced the policy decision during a session in the Legislative Assembly on Tuesday, noting that the current lack of regulation has left the state without a revenue stream from these services. “The government is not receiving any revenue from these services. We have now formulated a new policy to bring them under a regulatory framework,” Sarnaik stated. Why Rapido Founders Were Booked by Nagpur Police.
Under the new rules, bike taxi operators must function exclusively through approved ride-aggregating apps, allowing authorities to monitor services effectively. Drivers will be required to hold a valid driving licence and a government-issued public service vehicle badge, which will be granted only after a mandatory police character verification.
Domicile and Employment Criteria
A key component of the new policy is the mandate for drivers to hold a Maharashtra domicile certificate. The government intends for this requirement to prioritise local employment and ensure drivers have a long-term connection to the state. “The domicile certificate is necessary so that we know how long a person [has been in the state] and whether they can speak Marathi,” Sarnaik explained to The Indian Express.
Revenue and Welfare Measures
The government has introduced a new financial model to support the regulation of the sector. Aggregators will be required to pay a daily fee of INR 5 per bike taxi to the state government. Additionally, 2 per cent of the fare from every ride will be contributed to a welfare fund managed by the State Transport Authority. “The welfare fund will be used for the benefit of drivers associated with bike taxis as well as four-wheeler aggregator platforms. We want those working through aggregators to receive welfare benefits and social security,” Sarnaik added. Driving Licence Rules 2026: Maharashtra Makes Domicile Certificate Mandatory From August 1.
Addressing Unauthorised Operations
The state has previously struggled with the proliferation of illegal petrol-powered bike taxis, as current rules largely permitted only electric vehicles. Despite multiple enforcement drives that resulted in thousands of vehicle seizures and significant fines, illegal operations persisted. “We are planning to make bike taxis legal from August 1 through a proper aggregator framework. Every bike taxi will operate through an app where services can be monitored. The objective is to regulate the sector rather than allow unregulated operations,” Sarnaik added.
(The above story first appeared on LatestLY on Jul 07, 2026 07:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
