RBI Extends Card Tokenisation Deadline By 3 Months Till September 30

The Reserve Bank of India (RBI) on Friday extended the timeline on credit card and debit card tokenisationby three months till September 30. The rules were earlier supposed to be complied with from July 1. The move comes after industry stakeholders highlighted some issues related to the implementation of the framework in respect of guest checkout transactions, the central bank said in a statement.

After the tokenisation of debit or credit card, merchants cannot store the card user’s sensitive information like its number or CVV during an online payment.

“The industry stakeholders have highlighted some issues related to implementation of the framework in respect of guest checkout transactions. Also, number of transactions processed using tokens is yet to gain traction across all categories of merchants. These issues are being dealt with in consultation with the stakeholders, and to avoid disruption and inconvenience to cardholders, the Reserve Bank has today announced extension of the said timeline of June 30, 2022 by three more months, i.e., to September 30, 2022,” the RBI said in the statement.

It added that this extended time period may be utilised by the industry for facilitating all stakeholders to be ready for handling tokenised transactions; processing transactions based on tokens; and creating public awareness about the process of creating tokens and using them to undertake transactions.

The extra time will also be utilised by the industry for implementing an alternate mechanism(s) to handle all post-transaction activities (including chargeback handling and settlement) related to guest checkout transactions, that currently involve /require storage of CoF data by entities other than card issuers and card networks, according to the statement.

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