New Delhi: In a relief, you don’t need to remember the 16-digit numbers of your debit and credit cards as the Reserve Bank of India (RBI) has enhanced the scope of tokenisation and permitted card issuers to act as token service providers (TSP). In a bid to ensure security of card data, a unique alternate code is generated to facilitate transactions through cards under tokenisation services, as per a PTI report.Also Read - EPL 2021-22: David De Gea and Jesse Lingard Stars in Manchester United's Dramatic Win Over West Ham
- Tokenisation aims to improve the safety and security of the payment system. This system replaces the actual card details with a unique alternate code called the ‘token’.
- This token is unique for a combination of card, token requestor and identified device.
- The central bank had earlier permitted ‘tokenisation’ services, under which a unique alternate code is generated for transaction purposes, on mobile phones and tablets of cardholders, the PTI report says.
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- The RBI on Tuesday also extended the device-based tokenisation to card-on-file tokenisation (CoFT) services, a move that will bar the merchants from storing actual card data. Card-on-file refers to card information stored by payment gateway and merchants to process future transactions, PTI reported.
- “…card issuers have been permitted to offer card tokenisation services as token service providers. The tokenisation of card data shall be done with explicit customer consent requiring additional factor of authentication (AFA),” the RBI said in a statement while extending device-based tokenisation framework to CoFT services, according to a PTI report.
- It said the decision will reinforce the safety and security of card data while continuing the convenience in card transactions, PTI reported.