India's massive card security deadline unlikely to be extended

While banks, card companies and large retailers are prepared, smaller merchants may face trouble which they say could lead to revenue losses for them in the short-term

India's central bank is unlikely to extend a Friday 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, say bankers and merchants.

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Despite a demand by smaller merchants to delay the compliance date, there has been no indication so far by the central bank that there is likely to be an extension in deadline, three banking and merchant sources with knowledge of the matter told Reuters.

The Reserve Bank of India (RBI) did not respond to an email request for comment.

"The general sense is that banks, card networks and (bigger) merchants are better prepared and so the push from the ecosystem side for an extension has also not been massive and we haven't received any indication to suggest an extension either," said a banker with a large state-owned bank.

"If it happens, it will be a surprise," he added.

Three years ago, India embarked on a mammoth exercise to secure card data by requiring businesses to tokenise cards by September 30.