Credit Card, Debit Card Users Alert! RBI to Take BIG Decision Tomorrow. Deets Here

New Delhi: The Reserve Bank of India (RBI) may not extend a deadline for businesses to set up an additional layer of security for consumers’ credit card data even after some concerns remain over payments failing and revenue losses, news agency Reuters reported quoting bankers and merchants. Though nothing has been confirmed so far, banking and merchant sources said that the RBI, so far, has not given any hint about the extension in deadline, despite a demand by smaller merchants to defer the compliance date.Also Read – RBI’s Next Repo Rate Hike Expected To Be 35 Bps To 6.25%

For the unversed,  the Reserve Bank of India (RBI) is all set to bring its card-on-file tokenisation norms into effect from October 1 after various complaints were filed regarding the misuse of debit or credit cards. Several people were cheated in the last few years by cyber frauds because they have stored their card data on the merchants website for future payments. Also Read – Maha Ashtami 2022: Are Banks Open Today?

WHAT IS TOKENISATION? 

Tokenisation means the details of your cards such as 16-digit number, names, expiry dates and codes which you used to save earlier for the future payments will now be replaced by a token. The token is used by the merchant’s website for the transaction. Also Read – RBI Monetary Policy: Governor Shaktikanta Das Hikes Repo Rate By 50 BPS, Sees Inflation At 6.7% – Watch Video

WHY IS RBI BRINGING THESE NEW NORMS? 

1.  The RBI is implementing these norms of tokenisation in order to secure the card details of the customers.
2. Currently, the bank card details are saved by a merchant during a transaction. If, the merchant’s website is hacked, the details of the customers will be exposed.
3. Post implementation of these norms all the customers data will be with the bank and not with the merchant website.
4. Securing/Tokenisation also helps you save the hassle of inputting your complete card details each time.
5. Customers need not have to pay any charges for availing this service.

Post implementation of these norms, customers have to follow below mentioned steps to get their cards tokenised.

1. Visit your favourite online application/website to purchase grocery, pay bills or order food and initiate a transaction.
2. In the check-out page, select HDFC Bank Credit/Debit Card and provide CVV.
3. Tick mark the check box “Secure your Card” or “Save Card as per RBI guidelines”
4. Enter the OTP received on your registered mobile number.
5. Congratulations!!! Your card details are now secured.

Once the customer tokenised their cards they will be able to recognise their details on the merchants website using the last 4 four digits of the cards, which is the only data the merchant will be able to save on their portal.