Business / RBI extends the deadline for card tokenization system till 30 June 2022

RBI Tokenisation Deadline: Taking a big decision, the Reserve Bank of India (RBI) has extended the deadline for the card tokenization system till June 30, 2022. RBI issued a circular for this on Thursday. That is, the limit of the card tokenization system has been extended by 6 months.

Earlier 31st December was the last date

Let us tell you, in September, RBI had announced new guidelines for customers transacting online on any e-commerce platform. Under this, card on file (CoF) tokenization was to be removed from all e-commerce platforms from their data by 31 December 2021. Card on File or CoF is the information on your card that various payment gateways keep safe with them, so that further payments can be made.

RBI issued circular

RBI has issued a circular asking all payment system providers and payment system participants that 'keeping in view the applications received by various participants, the time limit for storing CoF data has been extended by 6 months i.e. till June 30, 2022. . After this these data should be deleted.

These are the new rules of RBI?

1. As per the new rules, customers will have to enter their debit and credit card details every time they checkout from any website as their card details will no longer be saved on these platforms. However, in such a situation, a way to avoid the hassle of adding card details in every transaction will be solved through tokens.

2. Tokenization is a unique algorithm-generated code or token for your card details. The token will allow customers to conveniently make payments on these platforms without revealing the card details.

3. Under this, from June 30, 2022, customers will not be able to save card details on Amazon, Flipkart, Swiggy, Zomato, or any other e-commerce platform. To transact online, customers need to enter their card details every time an order is placed. To avoid the hassle of entering card details in each order, customers can tokenize their cards.

4. According to the report, if you use a card of Discover, Diners, RuPay or American Express, then you will have to enter your card information every time for manual online payment from June 30, 2022. If you use Visa or Mastercard, you will need to authorize the card information to be saved in the new format.

5. RBI's new guidelines will affect all payment services like Google Play Store, YouTube and Google Ads. Under the new format, you will have to enter your card information every time for all online manual payments till June 30, 2022.

card market of india

According to industry body CII, there are an estimated 985 crore cards in India, which are used for around 1.5 crore daily transactions worth Rs 4,000 crore. According to RBI's annual report, the Indian digital payments industry was valued at Rs 14,14,85,173 crore in 2020-21.