The method of online transaction is going to change from January 1, know the new rule

New Rule: If you are using debit or credit cards, then know that a big change related to them is going to be implemented from January 1, 2022. RBI has made this change to make debit and credit cards more secure. Under the new rule, no company will now be able to store your debit and credit card information such as card number, expiry date or CVV.

RBI has asked companies to delete the already stored data of customers. Now people’s card information will not be stored with the company, due to which the incidents of data theft and fraud will be curbed.

Tokenization process

  • RBI has approved the issuance of a token to those banks or companies that issue cards of Visa, MasterCard and Rupay. This process is named as tokenization.
  • Under tokenization, instead of card information, there will be an online transaction through a unique code or token. With the help of this, the customer will be allowed to do the transaction without informing the information. The process of tokenization will be applicable only in domestic transactions.
  • If a customer does not want to adopt the tokenization process, then he will have to enter his card information every time he does online shopping as no information will be stored there.
  • The more merchants you transact with, the more tokens will be issued to you.
  • If the customer wishes, he will also be able to delete his token. For this, a portal will be created by the banks for the card holders. Customers have to visit this portal to delete the token.
  • The Reserve Bank asked all merchants to generate a token reference number in lieu of the token number. Only these reference numbers will be stored with the merchants. If any kind of fraud is detected then the token cannot be used again.


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