Mumbai: Implementation of tokenization rules on credit card and debit card has been postponed till September 30. The postponement was due to requests from businesses that there be some practical issues.
The Reserve Bank has made card-on-file tokens mandatory when purchasing goods online locally. This way all customer details will be hidden from view by online companies. In addition, online companies should destroy any customer information they already have. That is, do not store customer name, PIN, CVV, validity period on debit or credit cards.
Since no customer details are stored on the online trading platforms, customers will no longer have to register their card number, validity, CVV and name every time they make an online transaction.
Will be stored as hidden tokens to help customers make a secure transaction. These tokens allow you to pay without disclosing customer details. Online e-commerce sites should not store any customer related information.
It has been announced that this will be implemented from January 1. It was then adjourned and extended for six months until July 1st. In this case the online trading companies have accepted the request that there are various practical issues in enforcing the tokenization rules and have been given a further 3 months. Postponed until September 30th.
Why this change?
Retailers retain debit card and credit card information so there is a risk of money being stolen if their security procedures are weak. Debit and credit card information in many previous hacking cases came to light through merchant websites. Through card tokenization, the Reserve Bank plans to make things more secure.
Since there is no need to punch the card to buy any items, card tokenization will facilitate transactions and speed up check outs. With card tokenization users can store a digital copy of their card on their smartphone. So carrying the card with you is unnecessary.
Many people believe that credit and debit card tokenization is a necessity of the times because it is believed that it will revolutionize debit card and credit card security.