Relief for online shoppers, RBI extends tokenization demand for credit and debit cards by 6 months
India Today
RBI is extending the tokenization demand for credit and debits cards in India by six months. This means that the disruption in online payments expected from January 1 will now not be happening, giving some relief to online shoppers.
There is some relief for online payment systems as well as online shoppers in India as the Reserve Bank of India has extended the online tokenization requirement for credit and debit cards by 6 months. The new requirement from RBI was supposed to come into effect from January 1, 2022, and it would have disrupted the online payments in some ways. The new requirement from RBI notes that merchants can no longer store the debit and credit card details of India shoppers. Instead, working with payment gateways, they have to implement tokenization of the cards.
The new rules will make it more difficult for cyber criminals and hackers to steal or misuse credit and debit cards from websites and apps. However, the new rules do introduce a bit of friction in the payment system and make the online payments slightly less smooth.
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