A driver contracted with US-based online taxi company Uber Technologies has been arrested near New Delhi after a woman passenger accused him of sexual harassment when she hailed his cab over the weekend.

Uber was banned in New Delhi in December after another woman passenger accused one of its drivers of rape. The company resumed its services in January after applying for a radio taxi licence, which it still awaits.

"The driver was arrested after the initial investigation," said a police official in Gurgaon, a city near New Delhi. "He is in police custody and we are questioning him."

The woman, a 21-year-old professional dancer, said the Uber driver kissed her hand after dropping her in Gurgaon on Saturday night. She ran away when the driver tried to kiss her on the mouth.

Authorities in New Delhi have maintained that Uber is banned in the capital and is operating without permission.