The genuine card details are substituted for an alternate code known as a token, in accordance with the new RBI regulation for the safeguarding of credit and debit card data.
After receiving numerous complaints concerning the misuse of debit or credit cards, the Reserve Bank of India (RBI) is set to execute its card-on-file tokenization requirements as of October 1. The addition of this layer of security through tokenization is anticipated to enhance consumers’ experiences with digital payments, claims a report by the news agency PTI.
Many customers have been victimised by cybercriminals in recent years because they had saved their card information on the merchant’s websites for future purchases.
The deadline was extended by three months in July so that the business community would have more time to assist all stakeholders in preparing for tokenized transactions. The extension was also made in order to increase public awareness of the creation of tokens and their use in transactions.
