NPCI Debuts NTS Platform For Card Tokenization For Customer Safety

The National Payments Corporation of India (NPCI) announced the introduction of the NPCI Tokenization System (NTS) yesterday, which would allow card tokenization as an alternative to merchants maintaining card details of the customers To effectively increase customer safety and provide a smooth purchasing experience, the NPCI Tokenization System (NTS) will allow the tokenization of RuPay cards.

"Based on the set of guidelines that have been mandated by the RBI, sensitive customer information is to be stored in the form of an encrypted 'token' to help secure transactions. These tokens then allow payments to be processed without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy, NPCI said in a statement.

All RuPay cardholders will benefit from NPCI's Token Reference On File (TROF) service, which will keep their accounting records secure. Customers' card credentials will be kept safe and secure in the RuPay Network Secure vault. With NTS, acquiring banks, aggregators, merchants, and others can become NPCI certified and undertake the function of Token Requestor, assisting in the recording of the Token reference number (Token Reference On File) against all stored card numbers. All of these organizations may keep their RuPay customer base by using TROF for future transactions triggered by their RuPay cardholder or customers. "This fool-proof and transparent system will ensure no customer-sensitive information will get released. In addition to enhancing security, tokenization will also help in reducing friction in the payment process by providing a faster check-out experience to the customers, NPCI claimed.

"RBI's guidelines on Card Tokenization are to enhance the safety of the digital payments ecosystem in the country. We are confident that the NPCI Tokenization System (NTS) for tokenization of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely. We believe that this unique Card-on-File Tokenization solution will not only safeguard customers' confidential data but will also further strengthen the overall digital payments environment," Kunal Kalawatia, Chief of Products, National Payments Corporation of India stated in the launch.