New Delhi. The Reserve Bank of India (RBI) has extended the deadline for the implementation of the card tokenization system to June 30, 2022. The first card tokenization system was to be implemented from January 1, 2022. In its circular, RBI instructed all payment system operators, saying, “The timeline for storage of COF (Card-on-File) data has been extended by 6 months i.e. till June 30, 2022.”
What is Card Tokenization System
Under the card tokenization system, complete details will not have to be shared with third party apps during online payment by credit and debit cards. With the help of token number, users will be able to make online payment without sharing debit or credit card details.
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Online merchants will not be able to store card details on their platform
During online payment, the information related to the debit-credit card of the customers has been stored. But with the implementation of the new instructions, from July 1, 2022, merchant card users will not be able to store card related information on their platform. Instead, they will have to issue a token number to each card.
Estimated to have around 985 crore cards in the country
There are estimated to be about 985 crore cards in India, with a daily transaction value of about Rs 4,000 crore.
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Industry body CII has expressed concern
Industry body Confederation of Indian Industry (CII) says that instead of submitting information related to debit-credit card of customers, due to the implementation of the new sector of issuing token numbers, online merchants may have to lose 20-40 percent of revenue. . Such apprehensions were raised in an online conference organized by the Media and Entertainment Committee of CII on Wednesday.
Tags: credit card, Debit Card, digital payment