In order to make the data of customers more secure, the new rule that RBI was going to implement from January 1, has been extended for 6 months. Now tokenization of card payment will be implemented after June.
New Delhi: In order to make the data of customers more secure, the new rule that RBI was going to implement from January 1, has been extended for 6 months. Now tokenization of card payment will be implemented after June.
The rule will be applicable after 6 months
Be it a small shop or a shopping mall, most people have started paying through cards only. In such a situation, we give the data of our card to any company or merchant and this merchant or company stores our data. This increases the chances of data theft. To prevent such frauds, RBI had planned to introduce a new rule, which was going to come into effect from January 1. But late on Thursday, the Reserve Bank issued an order in this regard and said that merchants can now store the data of the card till June.
What is tokenization?
Whenever we do some shopping, we give the data of our card to any company or merchant and this merchant or company stores our data. This increases the chances of data theft. To prevent such fraud, RBI has introduced a new rule, in which it will give a token number of any credit or debit card, which is being called tokenization.
What is ‘Card Token’ System?
After the introduction of this new system, you will not have to share your card details with any third party app. At present, it is not so, now if you order food online or book a cab, then you have to give the details of the card and here the complete details of the customer’s card are saved. Where there is a risk of fraud. This will not happen with the token system.
No need to enter details in token system
You will not need to enter your card details once the token system is implemented. Instead, a unique alternate number ( Unique Alternate Number happen) called ‘token’, which is linked to your card. Using which your card details remain safe. Meaning when you make payment after shopping on any e-commerce website, such as Amazon or Flipkart, then you will not have to enter your 16 digit card number, instead you will have to enter token number.
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