New Debit Card, Credit Card Tokenisation Rules To Change From July 1

New Delhi: From July 1 onwards, online merchants will not be able to store customers’ card data.

The card tokens will be stored as an encrypted “token” to help customers make their transactions secure. These tokens will also allow payment to be made without disclosing any details of the customer. The RBI in its guidelines has made it mandatory to replace the original card data with an encrypted digital token.

Now from July 1, 2022, online merchants will have to delete customers’ debit and credit cards’ data from their records.

Keeping in mind the customers’ safety, the Reserve Bank of India (RBI) had last year issued debit and credit card tokenisation rules. As part of the new rules, the merchants were barred from storing customer card data in their servers.

In the guidelines, the central bank had made the adoption of card-on-file tokens for domestic online purchases mandatory. The deadline for the adoption of card tokens was extended from January 1, 2022, to July 1, 2022.