CHENNAI: The new card tokenisation rules will come into effect from July 1, 2022 onwards and all the debit and credit holders while paying amount to online merchants will not be able to store customers card date.
In view of customer's safety, last year, the Reserve Bank of India issued a statement on debit and credit card tokenisation rules. The new rules restricts from storing customer's credit and debit card date on their servers.
RBI guidelines
The RBI had also made a mandatory rule of card-on-file tokens for domestic online customers. This mandatory rule of card tokens was extended from January 1, 2022 to July 1, 2022 for a period of six months.
Encrypted token
As per the tokenisation rules, the card data will be stored as encrypted token for the safety and security of the customers transactions, which would restrict and secure the customers details in order to stop misusing by merchants.
Soon after the effect of the rule, it was notified that all merchants have to delete customers debit and credit cards data from their server.
Card tokenisation not mandatory
It was notified that the card tokenisation rule is not mandatory. Suppose if any of the ccustomers is not willing to give his card tokenisation data, on that situation that particular customer has to enter all the card details such as name of the customer, CVV, card validity every time whenever they are making an online payment.
If a customer is ready to share card tokenisation data, they can enter the CVV or OTP code during the payment.
Important features of Card Tokenisation Rule:
The new card tokenisation rule is only for domestic online transactions.
Provides safety and security
To secure card data
Restricts misusing of card details
Encrypted digital token
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