New rules for Debit Card, Credit Card tokenization will be applicable from July 1
According to the Reserve Bank of India (RBI), the card tokenization rule is going to come into force from July 1. According to the new rule, businesses and other institutions will have to remove information related to credit and debit cards.
The Reserve Bank of India (RBI) often introduces new rules keeping in mind the safety of bank customers. In this episode, now from July 1, there is going to be a big change regarding the rules of debit and credit cards. From next month, payment gateways, merchants, payment aggregators and acquiring banks will no longer be able to store customer card details. That is, every time to do a transaction, you have to enter the debit-credit card details. This is because the card transaction tokenization will start from 1st July 2022.
Under Token Services, a unique alternate code is generated for the transaction through the card. It is the process of substituting a 16 digit customer card number with a non-sensitive equivalent value called a token. This means that the customer's card information will no longer be with any merchant, payment gateway or third party. Due to card tokenization, customers no longer need to worry about their card details. Cardholders will have to give an explicit consent which will be collected for the token.
The RBI's first deadline for tokenizing card details was June 30, 2021. But at the request of merchants and payment aggregators as well as card companies and banks, it was extended till December 31, 2021. After this the deadline was again extended to six months. The deadline for credit, debit card tokenization is June 30, 2022.
You have to pay to buy things by visiting any shopping website/application. At checkout, select your preferred card payment option and enter CVV details. Then click on “Secure Your Card” or “Save card as per RBI guidelines”, Tap on Save and Enter OTP. The credit or debit card will now be successfully tokenized and secured.