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Reserve Bank of India RBI is going to implement some new rules for its credit card and debit card holders from 1 October 2022.
Out of which, there were constant discussions about the implementation of such a rule from last year i.e. 2021 and its date has now been increased to 30 September 2022.
But now after September 30, 2022, the Reserve Bank of India (RBI) does not want to extend its date further, as per the banking sector experts.
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RBI’s new Tokenization System
This new rule is Card on File Tokenization. Under this new Tokenization rule of RBI, now it will be more secure to make payments with a credit card and debit card.
What is the need for an RBI Tokenization system?
The Reserve Bank of India has said on this that people who use credit cards and debit cards and whenever they share their card details anywhere, there is a possibility of their details being stolen.
Due to this many fraud cases come to the fore. Keeping this in mind, RBI’s New Tokenization System 2022 can be implemented from 1 October 2022. This will make your payment method more secure.
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What is the new RBI Tokenization System 2022?
This system can be implemented from October 1, 2022, through this whenever someone makes any kind of online payment by debit card or credit card, say on an app or on point of sale machines (POS), etc. The details of such cards will now be in the form of an encrypted token.
The app or online platform through which you are transacting a payment, then they will no longer be able to save your card information and from October 1, 2022, if these companies have saved your card’s details previously then under this new rule of Reserve Bank of India, they will have to remove all your debit card and credit card information from their platform.
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How does RBI’s new tokenization system work?
RBI’s new tokenization gives you freedom instead of filling the details of the card, an alternative code or token will be given. If you do the transaction through any payment company, at that time it will be optional and by doing this, those companies will not be able to save your card details with them.
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Will the rbi tokenization rule be applied to all?
In recent news it has come to the fore that the Reserve Bank of India will not enforce this rule on all users, if you want, you can enable it or you can make payments with old methods too.