The Reserve Bank of India on Thursday extended card tokenisation deadline to June 30, 2022. According to a circular issued by the apex bank, "the timeline for storing of CoF data is extended by six months, i.e., till June 30, 2022; post this, such data shall be purged."
In addition to tokenisation, industry stakeholders may devise alternate mechanisms to" handle any use case (including recurring e-mandates, EMI option, etc.) or post-transaction activity (including chargeback handling, dispute resolution, reward / loyalty programme, etc.)" that currently requires storing card data (CoF) by entities other than card issuers and card networks, the central bank further noted.
The earlier deadline set by the Reserve Bank was set to expire on December 31, 2021.
Earlier, the industry lobby of banks, Indian Banks Association (IBA), had made representation to the RBI for an extension of the tokenisation deadline.
Meanwhile, the RBI said it has imposed a penalty of Rs 1 crore each on payment system operators One Mobikwik Systems Private Ltd and Spice Money Ltd for deficiencies in regulatory compliance.
Giving details, the central bank said it observed that the two entities had not complied with the directions issued by the RBI on networth requirement for Bharat Bill Payment Operating Units (BBPOUs).
As these were offences of the nature referred to in a Section of the Payment and Settlement Systems Act, 2007, notices were issued to the entities.
