How to tokenise your debit, credit card before September 30

Ravi Shankar / TIMESOFINDIA.COM / Aug 26, 2022, 14:04 IST

Comments

Text Size

Small
Medium
Large

How to tokenise your debit, credit card before September 30

Tokenisation

The Reserve Bank of India (RBI) has made mandatory that all debit and credit card data used in online, point-of-sale, and in-app transactions be replaced with unique tokens on or before September 30. RBI's card-on-file (CoF) tokenisation norms will take place from October 1. According to the central bank, the new tokenisation system will enhance the cardholders' payment experience through an extra layer of security and also make the transaction safer and more convenient for customers.According to the RBI, "Tokenisation refers to the replacement of actual card details with an alternate code called the "token," which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as "identified device").

Also Read: What is tokenisation in banking?The new guidelines for tokenisation were set to come into effect from July 1, 2022 but the due date was extended to September 30. As per the RBI, the stakeholders of the industry highlighted some issues and problems regarding the implementation of the framework in respect of guest checkout transactions. These issues were being dealt with in consultation with the stakeholders, and to avoid inconvenience to cardholders, the central bank announced an extension of the June 30 timeline by three more months, i.e.

, to September 30.

Also Read: What is cryptocurrency and how does it work?These tokens will help in making payment transactions without disclosing customer details. RBI guidelines make it compulsory to replace the original card data with an encrypted digital token. Additionally, it will improve cardholders' online transactional experiences and safeguard their card information from online hackers and fraudsters.

Steps to generate your tokenHere are 6 simple steps to tokenise your debit and credit card as per RBI;Steps:

Step 1

Visit any e-commerce merchant website or application, to make a purchase followed by payment for the item(s).
Step 2

Select your card and key in your payment details along with any other necessary information.
Step 3

Select 'secure your card as per RBI guidelines' option, secure your card and tokenise it as per guidelines issued by the central bank.
Step 4

Authorise the token creation. Use the one-time password (OTP) sent by your bank to your email or mobile device to complete the transaction.
Step 5

Create your token. The data of your card will be then replaced with this token.
Step 6

When you return to the same website or application, the last four digits of your saved card will be displayed to assist you in recognising it during a transaction. This means that your card has been tokenized.