The Reserve Bank of India (RBI) recently announced online transaction guidelines said that the e-commerce websites will not be able to store customers’ card details from January 1, 2022. RBI has pushed the online transaction guidelines by another six months, to June 30, 2022.
The Reserve Bank of India said in an official statement on Thursday, “the timeline for storing of CoF data is extended by six months, i.e., till June 30, 2022; post this, such data shall be purged”. Post-June 30, 2022, e-commerce platforms or apps and websites that store customers’ credit and debit card details will not be able to save these details. Once the new rule comes into effect, customers will need to enter their debit and credit card details for every transaction.
One way to avoid the hassle of adding card details at every checkout will be solved through tokenisation. It is a unique algorithm-generated code or token for your card details. Token will allow customers to make easy payments on these platforms without exposing their card details. The new RBI rules state “the tokenisation of card data shall be done with explicit customer consent requiring Additional Factor of Authentication (AFA)”.
In addition to announcing the extended dealing for card transaction rule, RBI said that besides tokenisation, “industry stakeholders may devise alternate mechanism(s) to handle any use case (including recurring e-mandates, EMI option, etc.) or posttransaction activity (including chargeback handling, dispute resolution, reward / loyalty programme, etc.) that currently involves / requires storage of CoF data by entities other than card issuers and card networks.”
In simple words, you will be able to use your debit or credit card details for the online transactions even after January 1, 2022, at least until June unless RBI decides to push the deadline further.
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