RBI Sets Deadline For Card Tokenisation As October 1, 2022

In a circular released today, RBI informed that all of the entities other than card networks as well as card issuers are to purge the CoF or Card-on-File data stored earlier by October 1, 2022. The relief has been allowed by the RBI for enabling smooth transition to an alternate mechanism of payment.

RBI Sets Deadline For Card Tokenisation As October 1, 2022

Also, other than card issuer and the card network, the merchant of its PA involved in the online transaction may maintain the data for a maximum of T+4 days (where "T" denotes the transaction date) or until the settlement date, whichever comes first.

Once the settlement against the transaction is made the data needs to be deleted. The acquiring banks .
keep CoF data on file until January 31, 2023, for use in handling any post-transaction activities.

Further in case any of the parties does not complies with then the RBI shall take appropriate steps including business restrictions.