Tokenise Credit- Debit Card: The Reserve Bank of India says that after the change in the tokenization system, cardholders will get more facilities and security. It has been made mandatory to convert debit and credit cards into ‘tokens’ by September 30.
From October 1, there is going to be a big change in the rules related to the banking sector. RBI has also issued an order for this. Actually, for credit card and debit card users, RBI is bringing Card-on-File Tokenization (CoF Card Tokenization) rules from October 1. The Reserve Bank of India says that after the change in the tokenization system, cardholders will get more facilities and security. RBI is not extending its deadline.
RBI gave information
According to the information given by RBI, the purpose of these new rules is to make payment through credit and debit cards more secure than before. Actually, for the last few days, many reports of fraud with credit-debit cards were coming to the fore. But after the implementation of the new rule, if customers do transactions online, point of sale (POS) or app with debit or credit card, then all the details will be saved in the encrypted code.
Know what is this tokenization system?
The token system converts all debit and credit card data into ‘tokens’. By which the information of your card is kept hidden in the device. RBI has said that any person can convert the card into token by requesting the token bank. There is no charge to the cardholder for tokenizing the card. If you convert your card into a token, then your card information can be saved in the token on any shopping website or e-commerce website.
In this new rule of RBI, without taking approval from the customer, his credit limit cannot be increased. Not only this, if any payment has not been made then the fee or tax etc. cannot be capitalized while adding interest. This will not harm the customers, many times such incidents come to the fore when any new steps related to many cards are taken by the banks or by the credit card issuing institution.
Fraud cases will be less
The Reserve Bank says that due to the implementation of the new rule, the cases of fraud will be reduced due to the implementation of the payment system. Actually, due to leaking of credit card or debit card information of customers, the risk of fraud with them increases. The Reserve Bank has said that at present, e-commerce websites, merchant stores and apps etc.
store the card details after the customers make payment with debit card and credit card. In many cases, merchants are left with no option but to store the card details before the customers. If these details are leaked, there is a possibility of loss to the customers. But when the new rules are implemented then such incidents will be stopped.
There is a lot in the new provision
The most important thing in the new provisions of RBI is that the information related to the transactions done through the card will not be given to the ‘branding partner’. These provisions may affect the business model of companies operating in the co-branded card segment, as these companies entice customers with various offers based on these transactions. In such a situation, now the customers will not have the fear of falling in any kind of hoax. Also, there will be no risk of financial loss regarding the card.
