How to comply with new debit, and credit card guidelines from RBI ahead of the deadline?
By September 30, 2022, the Reserve Bank of India mandated that all credit and debit card information used for online, in-app, and point-of-sale transactions be replaced by independent tokens. According to a circular issued by the central bank, the Reserve Bank of India (RBI) later decided to extend the timeline for implementation of certain provisions of the Master Direction to October 1, 2022, after receiving various representations from industry stakeholders.
About The Guidelines
According to the RBI, the tokenization method would improve cardholder payment experiences by making them safer and more convenient. This facility stores card information as a “encrypted” token to make transactions easier for customers.
These tokens can be used to make payments without revealing the customer’s identity. According to RBI regulations, the original card data must be exchanged for an encrypted digital token. Tokenization will make your debit and credit card transactions more secure and convenient.
How to Create Your Own Token?
- Go to any e-commerce merchant website or application to make a purchase and then pay for the item (s)
- Choose your card and enter your payment information, as well as any other information required.
- Go to the’secure your card according to RBI guidelines’ option and secure and tokenize your card according to RBI guidelines.
- Allow the token to be created. To complete the transaction, enter the one-time password (OTP) that your bank sent to your email or mobile device.
- Make your token. This token has now replaced the data on your card.
- When you return to the same website or application, the last four numbers of your saved card are shown to help you identify it during a transaction. This indicates that your credit card has been tokenized.
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