RBI’s new rule will come into effect from July 1, 2022
Starting July 2022, you will have to re-enter your card details every time you make an online transaction.
- News18.com
- Last Updated:December 24, 2021, 10:22 AM
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Apps and websites like Amazon, Flipkart, Zomato, and more will not be able to save your card information on their platforms, according to new guidelines from the Reserve Bank of India (RBI). According to the new rules, customers will have to enter their card number each time they make a transaction starting next year. Customers will, however, have the option of avoiding the process and choosing to provide consent to the platforms to tokenise their cards.
RBI issued new guidelines that prevent merchants from saving customers’ card details in order to boost security. In September this year, RBI enhanced its guidelines on card tokenisation services in order to improve safety. In a press release, RBI said that tokenisation of card data shall be done with explicit customer consent requiring additional authentication. The deadline for merchants and other payment aggregators for storing cards was first set at June 30, 2021, then extended to December 31, 2021, and is now set at June 30, 2022. Tokenisation helps apps to replace card details with a unique algorithm-generated code or token which allows online purchases to go through without exposing card details.
Starting July 2022, you will have to re-enter your card details every time you make an online transaction. You will, however, have the option of “tokenising” your card. Here, platforms will ask the card network to encrypt details with additional factor authentication as needed. For now, only Mastercard and Visa cards can be tokenised by most leading e-commerce platforms. The new RBI guidelines are for both credit and debit cards users. Customers won’t need to pay any extra charge for tokenisation of cards.
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