RBI Tokenization Guidelines: The Reserve Bank of India said in the order that the credit or debit card data of Acquiring Bank Payer (Card on File) can be stored till January 31, 2023. Let us tell you that under the card tokenization system, banks had to delete this data immediately after the transaction. Acquiring banks are those who deposit money in the shopkeeper’s account on behalf of the customer.
what is card issuer bank
Let us tell you that the bank which deducts money from the customer’s account is called issue bank. In addition to the card issuer and the card network, merchants and payment aggregators are also involved in the process of completion of a transaction. In this way the other 2 units will also be able to save the data of the card. Its maximum duration will be 4 days.
data will be saved for only 4 days
RBI has said that this data should be used only for transaction settlement and after that it will have to be deleted. It is to be noted that except card issuers and network all other entities can save data for 4 days till 30th September and after that they will not be allowed to do so.
extended last date
Reserve Bank of India ie RBI has extended the deadline for implementation of card tokenization system to September 30, 2022. This deadline was earlier June 30, 2022.
What is Card Tokenization
Tokenization means that a Unique Alternate Code ie Token is generated for the transaction through the Card. These tokens will allow payment to be made without disclosing customer details. The purpose of the tokenization system is to prevent online banking fraud. Many of you have used ‘Secure Your Card’ on shopping app or website. or ‘RBI Guidelines on Save As’ Must have seen written After saving it and entering the OTP, your card will be tokenized.