INSUBCONTINENT EXCLUSIVE:
RBI has actually extended the deadline for card tokenisation till June 30, 2022Amid duplicated demands from market stakeholders, the Reserve
Bank of India (RBI) on Thursday extended the due date for cards tokenisation till June 30, 2022
Tokenisation indicates replacement of credit and debit cards details with an alternate code called a token
Tokenised cards are thought about safe for online deals, as the card details are not shown the merchant throughout transaction processing
The timeline for keeping of card on file (CoF) information is extended by 6 months, i.e., till June 30, 2022, the central bank said in a
notification to all payment system operators, adding that after the expiration of the extended due date, all such data will be purged.The
earlier deadline set by the RBI was to expire on December 31, 2021
Earlier, the Indian Banks Association (IBA) had actually sent out a representation to the RBI for an extension of the tokenisation
deadline.The primary factor behind stakeholders looking for an extension of the tokenisation due date was that numerous small and
medium-sized merchants do not yet have the facilities to shift to the brand-new system, though banks are more or less prepared for
it.Tokenisation is described as a replacement of credit and debit card information with an alternate code called a token
A token is distinct for each card, token requestor and device.The token requestor is the entity that accepts a request from a customer for
tokenisation of a card and passes the demand on to the card network for the issuance of a corresponding token.The cardholder can get the
card tokenised by starting a demand on the app supplied by the token requestor.The token requestor will forward the demand to the card
network, which, with the authorization of the card issuer, will issue a token matching with the combination of the card, the token
requestor, and the gadget.
