According to the Reserve Bank of India (RBI), new Credit and Debit Card tokenisation rules will be implemented soon, starting Saturday, 1 October 2022. The new rules have been introduced to enhance the online payment experience of customers.
What are RBI's New Credit & Debit Card Rules and How Will It Affect You? Well, RBI’s CoF (card-on-file) tokenisation norms make it mandatory for Credit and Debit card holders to use specific codes (tokens) while initiating the online transactions. The main purpose behind this new change is that the sensitive information of card holders like CVV, card number, expiry date, and other sensitive information will not be stored while processing the online payments.
The impact of RBI's new Credit and Debit card rules is that customers will have to enter all the card details everytime they wish to go for an online payment or they have the option to use the tokens to enure secure online payments.
Earlier the last date to implement the RBI's CoF tokenisation rules were set for July 2022 but after an extended deadline of almost 3 months, the new rules will be applicable from 1 October 2022.
Credit and Debit Card Tokenisation From 1 October: What Is It and How To Apply?
The Credit and Debit Card tokenisation rules set by RBI for customers will be in effect from Saturday, 1 October 2022. Customers will have to create tokens now while making online payments. The tokens will be replacements to actual cards. Every time a customer wishes to pay online, they can inititae a token request, a one-time password (OTP) will be asked and the token (unique code) will be generated. The benefit of tokenisation is that no personal card details will be saved on any online website.
Following are some easy steps to create tokens while initiating online transactions:
Initiate a card token request via the bank's website or token requestor's application.
Once the token request for a Credit or Debit card is generated, the corresponding bank will receive the request.
A token will be created after the card holder's details are verified by the bank through an OTP.
Use the token everytime you want to shop online. No personal card details will be saved on online websites.
Token debit and credit cards are applicable to Bharat QR code payments all online and offline merchant based payments, and NFC-enabled POS transactions on mobile credit cards.