The Reserve Bank of India (RBI) is all set to implement the new rules regarding payment by credit card and debit card, which will come into effect from October 1.
As per the new rule, Card on File (CoF) tokenization, will change the payment experience of debit and credit card holders. If you have not yet tokenized your card then you can contact your bank. Tokenization is a process of converting sensitive data into ānon-sensitiveā data, known as ātokensā. These tokens convert the debit or credit card holderās 16-digit account number into a digital credential that cannot be stolen or reused. With the help of this token, you can save and transact from any site. There is also no risk of fraud or tampering with it.
The last date given by RBI to bring it into effect was 1 July, but it has been later extended to 30 September. Many merchants have already completed this under Card on File Tokenization, but there are still many more. So far, tokens of 19.5 crore people have been issued under this rule.
RBI had last year barred commerce websites from saving customer card details and made it mandatory to accept tokenization. This rule will be brought into effect from next month.
In online payments, many entities, including merchants, store card data such as card number and last date ā card-on-file (COF) ā bringing convenience and comfort to cardholders. However, it can also prevent fraud, as the availability of card details with multiple entities increases the risk of card data theft or misuse.
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