RBI's Push Card Security Likely To Hit Merchants, Lenders: Report
NDTV
RBI issued guidelines in March 2020 saying that merchants will not be allowed to save card information on their websites to boost data security.
The Reserve Bank of India's plans to move towards card tokenisation is likely to hit a wide range of companies from major e-commerce firms and food delivery firms to lenders, while increasing the use of cash, said industry sources and bankers.
RBI issued guidelines in March 2020 saying that merchants will not be allowed to save card information on their websites to boost data security. It issued fresh guidelines in September 2021 giving companies until the end of the year to comply with the regulations and offering them the option to tokenise.
Tokenisation is a process by which card details are replaced by a unique code or token, generated by an algorithm, allowing online purchases to go through without exposing card details, in a bid to improve data security.
The RBI has ordered all companies in India to purge saved credit and debit card data from their systems from Jan. 1, 2022.
