The Reserve Bank of India (RBI) recently announced online transaction guidelines, stating that e-commerce websites will not be able to store card details of customers with effect from January 1, 2022. RBI has extended the online transaction guidelines by another six months to June. 30, 2022.
“The time limit for storage of COF data has been extended by six months, i.e. up to June 30, 2022; post this, such data will be purged,” the Reserve Bank of India said in an official statement on Thursday. After June 30, 2022, e-commerce platforms or apps and websites that store credit and debit card details of customers will not be able to save these details. Once the new rule comes into force, customers will have to enter their debit and credit card details for each transaction.
One way to avoid the hassle of adding card details at every checkout would be solved through tokens. This is a unique algorithm-generated code or token for your card details. The token will allow customers to make easy payments on these platforms without revealing their card details. The new RBI rule states that “Tokenization of card data will be done with explicit customer consent, which will require Additional Factor of Authentication (AFA)”.
In addition to announcing the Extended Dealing for Card Transaction Rule, RBI said that apart from tokens, “industry stakeholders can provide any use case (including recurring e-mandate, EMI option, etc.) or alternative to handle posttransaction activity.” May devise mechanism(s) including chargeback handling, dispute resolution, reward/loyalty programs, etc.) that currently involve/require storage of COF data by card issuers and entities other than the card network.
In simple words, you will be able to use your debit or credit card details for online transactions even after January 1, 2022, at least till June, unless RBI decides to extend the deadline.
Appeared first on BGR India after RBI extended the token rule deadline for credit and debit card transactions by 6 months.