The Reserve Bank of India (RBI) has made it mandatory for all credit and debit card data used in online, point-of-sale, and in-app transactions to be replaced with unique tokens by September 30 this year. The deadline was extended by three months starting July. Bank customers Debit card credit card rules change from October. card tokenisation.
Here is all you need to know about the new rules for Bank customers Debit card, credit card holders which will come into effect from October:
What is card tokenisation?
As per the RBI, tokenisation refers to the replacement of actual card details with an alternate code called the “token”. A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during the processing of the transaction. The cardholder can get the card tokenised by initiating a request on the app provided by the token requestor.
The token requestor will forward the request to the card network which, with the consent of the card issuer, will issue a token corresponding to the combination of the card, the token requestor, and the device. The customer need not pay any charges for availing this service. Tokenisation can be performed only by the authorised card network and the list of authorised entities is available on the RBI website.
The customer need not pay any charges for availing of this service. Tokenisation has been allowed through mobile phones and/or tablets for all use cases/channels (e.g., contactless card transactions, payments through QR codes, apps etc). No, a customer can choose whether or not to let his / her card tokenised. Those who do not wish to create a token can continue to transact as before by entering card details manually at the time of undertaking the transaction.
Actual card data, token and other relevant details are stored in a secure mode by the authorised card networks. Token requestor cannot store Primary Account Number (PAN), i.e., card number, or any other card detail. Card networks are also mandated to get the token requestor certified for safety and security that conform to international best practices / globally accepted standards.
The registration for a tokenisation request is done only with explicit customer consent through Additional Factor of Authentication (AFA), and not by way of a forced / default / automatic selection of check box, radio button, etc. Customer will also be given choice of selecting the use case and setting-up of limits.
A customer can request for tokenisation of any number of cards. For performing a transaction, the customer shall be free to use any of the cards registered with the token requestor app. All complaints should be made to the card issuers. Card issuers shall ensure easy access to customers for reporting loss of “identified device” or any other such event which may expose tokens to unauthorised usage.