scorecardresearch
RBI tokenisation deadline: How to tokenise your card by Sept 30

RBI tokenisation deadline: How to tokenise your card by Sept 30

With no card data being saved with the merchant, the chances of it being compromised are minimal.  

According to the RBI, most large merchants have already complied with the tokenisation norms, and 195 million tokens have been issued so far.  According to the RBI, most large merchants have already complied with the tokenisation norms, and 195 million tokens have been issued so far. 

Under the new regime effective from October 1, 2022, your card details saved on a merchant platform will get deleted as per the regulatory mandate, thereby reducing the chances of it being compromised. Following that, you will have two options -- either to enter the full card details each time you make a payment, or opt for tokenisation.

The tokenisation process replaces the actual card details with an alternate code called a ‘token’. It is a unique combination of the card’s details, token requester, and the device through which the request is generated. In this process, instead of saving your card details on platforms such as Amazon, Flipkart or Zomato, you would be using the unique token. And it would be only for that particular merchant and that particular device, but it can be reused. With no card data being saved with the merchant, the chances of it being compromised are minimal.  According to the RBI, most large merchants have already complied with the tokenisation norms, and 195 million tokens have been issued so far. 

How to tokenise your card? 

For this, you first need to go to e-commerce merchant website/application and enter the credit/debit card details at the time of check out. Then, you will be given the option to secure the card and tokenise by selecting the 'secure your card’ option. You need to authorise the token's creation by using OTP sent to your registered mobile phone or email. After that a token gets created, replacing the actual card data. To help you recognise your card, the last four digits of the saved card will be displayed when you revisit the same website/application.

Also read: RBI's debit, credit card rule to change from October 1; check all details here

Will the process of tokenisation secure payments for end users? “Card Vaulting by way of tokenisation will take the card security to the next level across the payments ecosystem, as the sensitive data will be managed only by schemes/issuers. It in fact lends higher credibility to a seamless and secure payments experience. We have seen higher success ratios across merchant segments which is an additional highlight,” says Jagdish Kumar, Head – VP Products and Solutions, Digital Commerce, Worldline India. 

The guidelines were earlier scheduled to come into effect on July 1, but later the deadline was pushed to September 30 as infrastructure was not ready for the transition. This time, however, stakeholders are confident of meeting the deadline. Kumar adds, “Worldline India is ready with the tokenisation service for the last 2 months, and traffic for most of the big merchants has been enabled for tokenisation. We haven’t received any complaints or issues from any of our merchants and hence the migration is in progress. We should be able to finish the enablement of tokenisation flow for all our merchants, well before the deadline.”

Also read: Paytm tokenises over 52 million cards across VISA, Mastercard, RuPay

Also read: PhonePe tokenises 1.4 cr debit, credit cards in line with RBI mandate