RBI’s Debit, Credit Card Rule To Change From Oct 1: Here’s What SBI Says on Card Tokenisation

The RBI in its guidelines says that a tokenised card transaction is safe as the actual card details are not shared with the merchant during transaction processing.

Written by: India.com Business Desk Edited by: Manmath Nayak

Published: September 1, 2022, 5:18 PM IST

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https://www.india.com/business/rbis-debit-card-credit-card-guidelines-latest-update-1-september-2022-new-rules-to-change-from-oct-1-sbi-card-ready-with-card-tokenization-mandate-visa-mastercard-rupay-5605960/ Copy

According to the Reserve Bank of India (RBI), tokenisation refers to replacement of actual card details with an alternate code called the "token", which shall be unique for a combination of card, token requestor and device.

New Delhi: As the RBI-instructed card tokenisation rules set to kick-in from October, the State Bank of India on Thursday said it has prepared the ground for moving towards card tokenization. “In terms of our preparation, readiness wise, technology wise, integration with all the networks, we are ready with all the networks like Visa, Mastercard and RuPay,” Rama Mohan Rao Amara, MD & CEO, SBI Cards and Payment Services (SBI Card) told PTI on Thursday.

According to the Reserve Bank of India (RBI), tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor and device.

The RBI guidelines say that a tokenised card transaction is safe as the actual card details are not shared with the merchant during transaction processing.

Talking more about card tokenization, Amara said “It is a very good measure in terms of protecting the consumer interest and ensuring against any data leakage.”

The RBI had in June this year extended the card-on-file (CoF) tokenization deadline by three months to September 30, on the back of various representations received from stakeholders. The earlier deadline was June 30.

“I think the universe of large merchants which accounts for a major share of the spend, they have already been tokenized. It is smaller merchants who are doing it now (are in the process),” Amara said.

“The kind of trend that we have seen among the consumers is that instead of patiently waiting for the reward points to accrue over a period of time, they want it on an instant basis. Now the demand is for an instant cashback. So, seeing this trend, we are launching this credit card. It is a first of its kind in the industry. In terms of merchant availability, it is very comprehensive in comparison to others in the market,” the official said.

Amara further added that the company will acquire customers for this new card completely on a digital mode, and customers can go to the company’s website to apply for it.