RBI's Guidelines For Credit Cards, Debit Cards: Steps To Tokenise Your Card Data Before September 30

A tokenised card transaction is seen much safer as the actual card details are not shared with the merchant during transaction processing

Reserve Bank of India. (File Photo)

New Delhi: The Reserve Bank of India (RBI) had extended the deadline in June to replace the credit card and debit card data used in online, point-of-sale, and in-app transactions with unique tokens till September.  Earlier, the new debit and credit card guidelines were scheduled to come into effect from July 1. The deadline was extended by three months from July so that the industry can utilise this time period in facilitating all stakeholders for managing tokenised transactions, reported news agency ANI. On June 24, RBI said about 19.5 crore tokens were created.

What Is Tokenisation?

Tokenisation is basically the replacement of actual card details with an alternate code or token. It applies to domestic, online purchases. “Tokenisation refers to the replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts the request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”), according to the RBI.

A tokenised card transaction is seen much safer as the actual card details are not shared with the merchant during transaction processing

Is tokenisation mandatory for customers?

The tokenisation system is completely free and not mandatory as well. Therefore, if a customer has not given consent for tokenisation of his or her card, then the customer will have to enter all card details including the card verification value or CVV, every time while making an online payment.

Remember that the registration for a tokenisation request is done only with explicit customer consent through Additional Factor of Authentication (AFA), and not by way of a forced or default or automatic selection of check box, radio button, etc, as per the RBI mandate.

Tokenisation has been allowed through mobile phones and/or tablets for all use cases/channels (e.g., contactless card transactions, payments through QR codes, apps etc.)

Know steps to tokenise Credit/Debit Card:

Firstly, visit the online website or mobile application to purchase items including food, grocery or clothes, initiate a transaction.

At the time of checkout, select the credit card or debit card payment option. Now provide the CVV details.

Here you need to click on the option that says “Secure your card" or “Save card as per RBI guidelines"

Click on save and enter the OTP received on your mobile number.

Your credit or debit card is now successfully tokenised and is secured. Merchants will not be able to access your information anymore.