Tokenisation Rules for Debit and Credit Cards: The deadline for credit and debit card tokenization is quickly approaching, and the Reserve Bank of India has been encouraging consumers to finish the procedure before the deadline. The central bank has been promoting the usage and benefits of tokenizing one's debit and credit cards through an online campaign. The new deadline for tokenizing debit and credit cards is September 30.
According to the RBI website, "tokenization refers to the replacement of actual card details with an alternate code called the "token," which must be unique for a combination of card, token requestor (i.e. the entity that accepts the customer's request for tokenization of a card and passes it on to the card network to issue a corresponding token), and device (referred to hereafter as "identified device").
According to the website of India's largest public sector bank, State Bank of India, this token includes no personal information that can be directly accessed and is constantly changing, making it the most secure means of completing payments.
Payment aggregators, wallets, and online merchants will no longer be able to hold your card data, including your debit or credit card number, CVV, card expiration date, and other sensitive information after your card has been tokenized. Banks and online retailers have already begun to notify their consumers about the need to tokenize debit or credit cards.
It should be emphasized that debit and credit card tokenization is optional. Customers can also choose not to tokenize their cards, but purchasing online will take longer. If you do not tokenize your card before September 30, you will be required to re-enter all card data when making an online purchase. This is due to the server's existing data being destroyed.
The cardholder can have the card tokenized by making a request using the app supplied by the token requestor, who is the client. The token requestor will pass the request to the card network, which will issue a token corresponding to the combination of the card, the token requestor, and the device with the agreement of the card issuer. The complete procedure may be found here.
The RBI extended the deadline for credit and debit card tokenization by three months, to September 30. Previously, the guidelines were expected to be followed beginning July 1. The move arose after industry stakeholders raised concerns about the framework's execution in terms of guest checkout transactions.