Tuesday, June 28, 2022

Tokenization Will Curb Fraud, Changes Will Be Implemented From January

New Delhi – For those using debit or credit cards, a major change related to these is going to be implemented from January 1, 2022.The Reserve Bank of India (RBI) has made this change to make debit and credit cards more secure.Under the new rule, no company will now be able to store your debit […]

New Delhi – For those using debit or credit cards, a major change related to these is going to be implemented from January 1, 2022.The Reserve Bank of India (RBI) has made this change to make debit and credit cards more secure.Under the new rule, no company will now be able to store your debit and credit card information such as card number, expiry date or CVV.RBI has asked companies to delete data already stored of customers.Now people’s card information will not be stored with the company.This will curb the incidents of data theft and fraud. The …

For those using debit or credit cards, a major change related to these is going to be implemented from January 1, 2022. The Reserve Bank of India (RBI) has made this change to make debit and credit cards more secure. Under the new rule, no company will now be able to store your debit and credit card information such as card number, expiry date or CVV. RBI has asked companies to delete data already stored of customers. Now people’s card information will not be stored with the company. This will curb the incidents of data theft and fraud. The process of tokenization RBI has given banks or companies that issue Visa, Mastercard and Rupay cards, Issuance of a token has been approved. This process is named as tokenization. Under tokenization, instead of card information, online transactions will be done through a unique code or token. With the help of this, the customer will be allowed to do the transaction without informing the information. The process of tokenization will be applicable only in domestic transactions. Not bound to tokenization If a customer does not want to follow the tokenization process, he/she will have to enter his/her card details every time he/she makes an online purchase as no information will be stored. The more merchants you have transactions with, The same number of tokens will be issued to you. Customers will also be able to delete their tokens if they wish. For this, a portal will be created by the banks for the card holders. Customers will have to visit this portal to delete the token. To stop the fraud Reserve Bank has asked all the merchants to generate a token reference number in lieu of the token number. Only these reference numbers will be stored with the merchants. If any fraud is detected, the token cannot be used again.

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