Tokenization of debit and credit cards will be applicable from October 1.
Despite the demand from sellers, RBI has not extended the deadline yet.
After this rule, no one will be able to store the customer’s card information.
New Delhi. If you also use credit-debit card then this news is very important for you. For the people using it, some rules are going to change from next month. Actually, RBI is about to bring card tokenization rules. The bank has set its deadline as September 30. That is, this new rule will come into effect from October 1.
As per the rules, the code or token number will be different for each transaction and you will have to share this code or token number with the online platform for payment. The Reserve Bank of India believes that after the introduction of the tokenization system, the payment experience of card holders will improve and debit card and credit card transactions will be more secure than before.
Small traders are demanding to increase the deadline
At the same time, according to some media reports, small traders are continuously demanding from RBI (Reserve Bank of India) to increase the deadline of the rule regarding the new rule. But there is no response from the central bank, Reserve Bank of India yet. Let us tell you that due to the introduction of card tokenization, sellers, payment aggregators and payment gateways will not be able to store the customer’s card information at the time of online purchase.
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Fraud cases will be reduced
The Reserve Bank believes that the implementation of the system of payment with tokens in lieu of cards will reduce the cases of fraud. According to the guidelines of the central bank RBI (Reserve Bank of India), merchants will keep the customer’s card information in the form of a token number so that the card details can be accessed by the customer in future purchases. Let us tell you that the government has introduced this rule in the year 2019 itself, so big traders have made full preparations for it, but small traders are facing problems.
Your data will no longer be leaked
Financial security has been given to customers in the new rules (Card Tokenization). The new system is expected to reduce the cases of fraud. Tokenization will not store any data on your card like card number, expiry date, CV number etc., then the chances of them leaking will also end and you will definitely be more secure than before.
Tags: business news in hindi, central bank of india, credit card, debit card, RBI
FIRST PUBLISHED : September 29, 2022, 17:22 IST