The Reserve Bank of India (RBI) has issued new rules for card payments, which will be applicable from January 1, 2022. In the new rules issued by the Reserve Bank of India, for online payment, there will now be a token system. Transactions through the Card, no one can store the original card data other than the card-issuing bank or the card network.
In the event of a dispute, Payment aggregators will be able to store limited data for transaction tracking or settlement. The last 4 digits of the original card number will not be allowed to store by the aggregators and the name of the card issuer. Any other information will not be held by any payment aggregator.
You will not have to share your card details with any third-party app from Jan 1, 2022. This will change in the coming days, now if you order food online or book a cab, then you have to give the card details, and here the complete details of the customer's card are saved. Where there is a risk of fraud. With the token system, this will not happen.
To understand this in simple language, you do not need to enter your card details in the token, instead, there is a unique alternate number called 'token', which is linked to your card. Using which your card details remain safe. Also, when you make payment after shopping on any e-commerce website, such as Myntra or Flipkart, then you will not have to enter your 16 digit card number, instead, you will have to enter the token number.
You just have to enter the CVV number while making an online payment. This means that the e-commerce website already has saved complete information about your debit or credit card. But now that won't happen. However, E-commerce websites cannot store your card information. Instead, the payment will be done through a 'token system'.
The token arrangement will depend on the customer's wishes. There will be no compulsion on the customers to take it. Apart from this, it will not be compulsorily implemented by any bank or card issuing company.
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