Reserve Bank of India announced new guidelines on Tokenisation of debit and credit cards. According to the announcement the rules will come into effect from July 1, 2022 instead of January 1, 2022.
On December 23, 2021 RBI made the official announcement regarding extension of date. Central bank of India gave extension after considering request letter by industry stakeholders. Stakeholders cited challenges that merchants will face while implementing the new rule. Merchants will no longer be able to store information of debit and credit cards of customers.
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All You Need To Know About Tokenisation
In March, 2020, RBI asked merchants to give their opinion on introducing a new payment system for security of cardholders.
RBI released a circular regarding the matter on March 17, 2020 (DPSS.CO.PD.No.1810/02.14.008/2019-20). According to circular, the authorized payment gateways and merchants should not store data on credit and debit cards from June 30, 2021.
It was extended to December 31, 2021 due to requests made by stakeholders.
For second time RBI has extended the request and June 30, 2022 is the new date. By this date, every merchant and payment gateway should purge data containing information on debit and credit cards.
Alliance of Digital India Foundation (ADIF) and Merchant Payments Alliance of India (MPAI) urged RBI to extend the deadline.
ADIF and MPAI said, “Ecosystem Readiness is a sequential process of going live with stable API documentation for tokenized transactions. The digital payments ecosystem is a long way from consumer ready solutions and unless regulated entities are compliant, merchants will not be able to successfully process tokenized transactions.”
