RBI to implement tokenisation of credit, debit card transactions from July 1

RBI to implement tokenisation of credit, debit card transactions from July 1

The Reserve Bank of India (RBI) on Tuesday extended the timeline for implementation of certain directions relating to the credit and debit card business.

AgenciesUpdated: Tuesday, June 21, 2022, 09:50 PM IST
article-image
Photo: Representative Image

In a bid to ensure security of credit, debit card data, the Reserve Bank of India (RBI) will implement tokenisation of card transactions from July 1, 2022.

In April, the Reserve Bank of India (RBI) proposed new rules related to debit and credit cards with the security of user details as a key highlight.

The Reserve Bank of India (RBI) on Tuesday extended the timeline for implementation of certain directions relating to the credit and debit card business.

The RBI, in a notification, said on receipt of representations from the industry stakeholders, the timeline for adherence to certain directions has been extended to October 1.

It had issued the directions on April 21, and these were to come into effect from July 1.

The extended timelines are for directions, including that card-issuers shall seek One Time Password (OTP) based consent from the cardholder for activating a credit card, if the same has not been activated by the customer for more than 30 days from the date of issuance.

If no consent is received for activating the card, card-issuers shall close the credit card account without any cost to the customer within seven working days from date of seeking confirmation from the customer.

Then, the card-issuers were to ensure that the credit limit as sanctioned and advised to the cardholder is not breached at any point in time without seeking explicit consent from the cardholder.

There was to be no capitalisation of unpaid charges/levies/taxes for charging/ compounding of interest.

RECENT STORIES

Adani Enterprises Announces ₹1,000 Crore NCD Issue Offering Up To 9.3%

Adani Enterprises Announces ₹1,000 Crore NCD Issue Offering Up To 9.3%

Gaja Capital Plans IPO, Files Draft Papers With Sebi

Gaja Capital Plans IPO, Files Draft Papers With Sebi

At BRICS Meet, FM Nirmala Sitharaman Holds Bilateral Talks With China, Russia, Brazil, And Indonesia

At BRICS Meet, FM Nirmala Sitharaman Holds Bilateral Talks With China, Russia, Brazil, And Indonesia

New Aadhaar Rules Announced, Check Updated Document List For Enrolment & Changes

New Aadhaar Rules Announced, Check Updated Document List For Enrolment & Changes

Microsoft Exits Pakistan After 26 Years, Major Blow To Tech Ecosystem

Microsoft Exits Pakistan After 26 Years, Major Blow To Tech Ecosystem