New Credit Card, Debit Card Rules Will Become Effective From July 1, 2022

Credit card and debit card holders can now heave a sigh of relief as from July 1, 2022 onwards no online merchant will be able to store your card data. Earlier last year the Reserve Bank of India (RBI) had introduced credit card and debit card tokenization rules considering the safety of debit card and credit card holders. As per the latest rules, merchants will be restricted from storing debit card and credit card data of customers.

According to reports, the card tokenization rules will become effective starting July 1, 2022.

It is worth mentioning that RBI had made adoption of card-on-file token for domestic online purchase compulsory. However, the deadline for adoption of card tokens all over the country stretched from January 1, 2022 to July 1, 2022. Now data will be stored as an encrypted token that will assist customers make safe transactions. The tokens will permit payments to be made without revealing sensitive customer details. AS per RBI guidelines, it is compulsory to replace the original card data with the encrypted digital token.

As per details available, now merchants will have to remove customers' data for debit cards and credits cards from their records.

Reports state that card tokenization system is not compulsory. So, when a customer has not given his/her permission for tokenization of the card, he/she will have to fill card details like name, card number, card validity date while making an online payment.

But, if the customer gives his nod for card tokenization, he/she will only be required to just enter the CVV or one time password (otp) while making transaction. There is no charge for tokenization system and customer will enjoy the hassle free payment experience and card data will also remain safe.

Tokenisation will only remain applicable to domestic online transactions as of now.
As per RBI rules, registration for tokenization request will be carried out with clear customer approval via Additional Factor Authentication or AFA and not through forceful way or default, automatic selection of check box.