By September 30, 2022, all credit and debit card data used for online purchases and payments must be replaced by independent tokens, according to a Reserve Bank of India directive.
The Reserve Bank of India (RBI), as per its circular issued by the central bank, later decided to extend the deadline for implementation of some components of the Master Direction to October 1, 2022 after taking into account various viewpoints from industry players.
The RBI claims that the tokenization process will enhance cardholder payment experiences by making them more secure and practical. To facilitate customer transactions, this facility stores card information as a "encrypted" token. Payments made with these tokens can be made anonymously by the customer. The original card information must be swapped for an encrypted digital token in accordance with RBI regulations. Your debit and credit card transactions will be safer and more convenient thanks to tokenization.
How to make your own Token:
1. Make a purchase on any e-commerce website or app, and then pay for the things. 2. Select your payment method and input your billing details. 3. Select the Secure Your Card option and Tokenize Your Card option in accordance with RBI guidelines. 4. Permit the creation of the token. Enter the one-time password (OTP) that your bank issued to your email or mobile device to complete the transaction. 5. Keep the token. The information on your card has been replaced by this token. 6. The last four numbers of your saved card are displayed when you return to the same website or application to make it easier for you to recognise it while making a purchase. Your credit card has been tokenized, as evidenced by this.
Rising geopolitical worries biggest risk to India's growth outlook: Jayanth Varma
Centre simplifies foreign investment rules to ensure ease of doing business
Inflation: RBI set to hike interest rates by another 50-60 bps