Tokenise Credit- Debit Card: The Reserve Bank of India says that after the change in the tokenization system, cardholders will get more facilities and security. Let us tell you that it has been made mandatory to convert debit and credit cards into ‘token’ (Credit Card Debit Card Token System) by 30 September.
Tokenise Credit- Debit Card: From October 1, there is going to be a big rule change related to the banking sector (October 1 Banking rule change). RBI has also issued an order for this. Actually, for credit card and debit card users, RBI is bringing Card-on-File Tokenization (CoF Card Tokenization) rules from October 1. The Reserve Bank of India says that after the change in the tokenization system, cardholders will get more facilities and security.
RBI gave information
It has been told on behalf of RBI that, these rules are being implemented because payment through credit and debit cards can be made more secure than before. Actually, for the last few days, many reports of fraud with credit-debit cards were coming to the fore. After the implementation of the new rule, all the details will be saved in the encrypted code if the customer transacts online, at Point of Sale (POS) or App with debit or credit card.
What is this tokenization system?
The token system converts all debit and credit card data into ‘tokens’. By which the information of your card is kept hidden in the device. RBI has said that any person can convert the card into token by requesting the token bank. To tokenize the card, the cardholder will not have to make any payment.
Fraud will be less!
According to the Reserve Bank, after the implementation of the new rule, the new payment system will reduce the cases of fraud. Actually, due to leaking of credit card or debit card information of customers, there is a risk of fraud with them. The Reserve Bank has said that at present, e-commerce websites, merchant stores and apps etc. store the card details after the customers make payment with debit card and credit card. In many cases, merchants are left with no option but to store the card details before the customers. If these details are leaked, there is a possibility of loss to the customers. But when the new rules are implemented then such incidents will be stopped.
RBI did the work for the benefit of the customers
The most important thing in the new rules of RBI is that the information related to the transactions done through the card will not be given to the ‘branding partner’. These provisions may affect the business model of companies operating in the co-branded card segment, as these companies entice customers with various offers based on these transactions. In such a situation, now the customers will not have the fear of falling in any kind of hoax. Also, there will be no risk of financial loss regarding the card.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
