New Delhi: Relief, you don’t need to remember your 16-digit debit and credit card numbers as the Reserve Bank of India (RBI) has expanded the scope of tokenization and allowed card issuers to take action. as token service providers (TSP). In order to ensure the security of card data, a unique alternate code is generated to facilitate transactions through cards as part of tokenization services, in accordance with a PTI report.Also Read – T20 World Cup: PCB President Breaks Rumors Babar Azam Is Unhappy With Team, Calling It “Factually Incorrect”
- Tokenization aims to improve the safety and security of the payment system. This system replaces the actual card details with a unique alternate code called a “token”.
- This token is unique for a combination of card, token requestor, and identified device.
- The central bank had previously licensed “tokenization” services, under which a unique alternative code is generated for transaction purposes, on cardholder cell phones and tablets, according to the PTI report.
- The RBI also extended device-based tokenization to card-on-file (CoFT) tokenization services on Tuesday, a move that will prevent merchants from storing actual card data. Registered card refers to card information stored by the payment gateway and merchants to process future transactions, PTI reported.
- “… card issuers have been allowed to offer card tokenization services as token service providers. Tokenization of card data must be done with the explicit consent of the customer requiring an additional authentication factor (AFA), ”the RBI said in a statement while extending the device-based tokenization framework to CoFT services, according to a PTI report.
- He said the decision would strengthen the safety and security of card data while continuing the convenience of card transactions, PTI reported.
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