RBI Ready To Tokenise Credit, Debit Cards From Oct 1: Here’s Why You Should Tokenise Your Card | Explained

Credit, Debit Card Tokenisation Latest Update: The move from the RBI comes as several people were cheated in the last few years by cyber frauds because they have stored their card data on the merchants website for future payments.

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

Updated: September 17, 2022, 10:06 PM IST

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Once the customer tokenised their cards they will be able to recognise their details on the merchants website using the last 4 four digits of the cards.

Credit, Debit Card Tokenisation Latest Update: The Reserve Bank of India (RBI) on Saturday said it is ready to bring its card-on-file tokenisation norms into effect from October 1 after various complaints were filed regarding the misuse of debit or credit cards.

The move from the RBI comes as several people were cheated in the last few years by cyber frauds because they have stored their card data on the merchants website for future payments.

Because of the card misuse complaints, the central bank will bring in the card-on-file tokenisation norms to secure online transactions where card details are saved on merchant websites for future payments. The RBI had earlier extended the card tokenisation deadline till September 30, 2022.

What does card tokenisaton mean?

Putting into simple words, tokenisation will replace the credit card details like 16-digit number, cardholder’s name, expiry date and codes saved for future payments with a “token”. In the days to come, these tokens will be used by merchant websites for transactions, instead of credit or debit cards.

Why you should tokenise your card?

• Firstly, tokenisation means the details of your cards such as 16-digit number, names, expiry dates and codes which you used to save earlier for the future payments will now be replaced by a token.
• Notably, the RBI is implementing these norms of tokenisation in order to secure the card details of the customers.
• At present, the bank card details are saved by a merchant during a transaction. If, the merchant’s website is hacked, the details of the customers will be exposed.
• Post implementation of these norms, all the customers data will be with the bank and not with the merchant website.
• Securing/Tokenisation also helps you save the hassle of inputting your complete card details each time.
• Customers need not have to pay any charges for availing this service.

Here’s how to get cards tokenised

• Visit your favourite online application/website to purchase grocery, pay bills or order food and initiate a transaction.
• In the check-out page, select HDFC Bank Credit/Debit Card and provide CVV
• Tick mark the check box “Secure your Card” or “Save Card as per RBI guidelines”
• Enter the OTP received on your registered mobile number
• Congratulations!!! Your card details are now secured.

Once the customer tokenised their cards they will be able to recognise their details on the merchants website using the last 4 four digits of the cards, which is the only data the merchant will be able to save on their portal. Further banks will provide a portal to their customers to view or manage their tokenised cards.