The transport departments in both the states said Uber has no permission to operate and advised people to refrain from hiring the app-based cab service.
The officials seized several cabs in Hyderabad and Cyberabad police commissionerates for unauthorized operations.
The action came in the wake of the ban on Uber in Delhi after a cab driver from the firm raped a 26-year-old executive in the vehicle.
An official of the transport department in Telangana said the ban would also be imposed on any other firm like Uber.
"Uber is only a web based organisation. We will not allow those cab operators who have no licenses and who are not registered with us," the official said.
Police on Tuesday made background check compulsory for cab drivers to ensure safety and security of citizens, especially women using taxi service for commuting across the city, a top official said.
"We have directed all taxi operators in the city to do a thorough background check of drivers employed with them and not to employ any drivers without verifying their service record with us," Bengaluru police commissioner MN Reddi told reporters here.