Rbi Tokenisation News Today

Card tokenisation is a major reform to enhance the security of online transactions. As of now, tokens could can only be created at various merchant websites. Now, the Reserve Bank of India (RBI) has proposed to introduce Card-on-File token creation facilities directly at the issuer bank level. A tokenised card transaction is considered safer as the actual card details are not shared or stored with the merchants to perform the transaction. Know how tokenisation works and how it will help you

About 35 crore cards have been tokenised and the system is ready for the new norms which set in from October 1, the Reserve Bank said on Friday.

It is to be noted that tokens will be merchant specific. If a consumer has a single card but uses online purchases from different merchants, different tokens will be issued. A token will be of 16 digits and unqiue for a combination of card and merchant.

With no card data being saved with the merchant, the chances of it being compromised are minimal.  

Your debit and credit card transactions will be safer and more convenient after tokenisation

Under RBI's tokenisation initiative, all companies are required to delete cardholders' all existing information and replace it with a unique 'token'.

Card-on-file or CoF refers to card information stored by payment gateway and merchants to process future transactions.

"Online merchants can lose up to 20-40 per cent of their revenues post 31 December, and for many of them, especially smaller ones, this would sound the death knell, causing them to shut shop," industry body CII said.

Earlier, the central bank had given the deadline of 31 December.

From January 1, 2022, no firm in the card transaction or payment chain, other than card issuers and card networks, should keep the real card details, according to the Reserve Bank of India (RBI).