Debit, Credit Card Tokenization: From next month, every Indian who transacts online using debit or Credit Card They will have to remember their card details every time they make a payment as these rules are going to change from July 1. From this date, the Reserve Bank of India, or reserve Bank of IndiaWho is in charge of setting banking rules in the country, implementing card tokenization The rule, under which if a customer does not tokenize his credit card and debit card, he will have to enter the details every time he makes an online payment.
RBI to implement card tokenization from July 1?
RBI had issued debit card and credit card tokenization guidelines last year, under which merchants were prohibited from storing customer card data on their servers. This was to protect and protect customer data. The central bank mandated the adoption of card-on-file (COF) tokens applicable to domestic online purchases. The deadline for card token adoption across the country was extended by six months from January 1 to July 1, 2022, to ensure a smooth transition from the current situation.
RBI had earlier announced the rule on March 17, 2020, in which it had asked merchants to give their views on creating a new payment system to protect cardholders in India. Reserve Bank of India on 23 December India Issuing a new notification on tokens saying that the deadline has been extended.
However, this time there will be no such extension as the payment ecosystem gears up to implement the card tokenization rule. “I don’t think there is any need to speculate about whether the deadline will be extended or not. There are some collateral issues that have come to our attention, which we will adjust as we go. RBI Deputy Governor T Rabi Shankar told reporters after the MPC meeting on June 8 that these are new issues that change every time your regime changes.
What will change under the new rule?
Under the new rule, when you start buying an item with a merchant, the merchant will initiate the tokenization. It will ask for your consent to tokenize your card. Once you give consent, the merchant card will send a token request to the network. The card network will then create a token, which will act as a proxy for your 16-digit card number, and send it back to the merchant. The merchant will save this token for future transactions. You will also need to enter your CVV and OTP as before to approve the transaction. If you want to use another card, the same process will have to be followed again.
However, the debit card and credit card tokenization process is not mandatory and the customer can choose whether to tokenize his card or not. In that case, the customer will have to re-enter all the card details while buying anything online.
read all breaking news , today’s fresh news watch top videos And live TV Here.