According to RBI, more than 56 crore tokens have been issued through the card tokenization system, worth Rs 5 lakh crore.
RBI Decision: Credit cards and debit cards have become a part of people’s lives. The number of users is also increasing day by day. Besides, cases of fraud are also increasing. To make debit-credit card transactions secure, the Reserve Bank of India has introduced new facilities by changing some rules (Debit Credit Card Rules). RBI has launched a new channel for Card On Tokenisation after the MPC meeting.
What will be the benefits?
Debit and credit card users will benefit from this decision of the Central Bank. They will be provided more security than before. Cardholders will also be able to directly link their accounts to different e-commerce platforms. According to RBI, at present, Card on File token can be generated only on the merchant’s application or webpage. But now there has been a proposal to start token manufacturing facilities at the issuing bank level.
About Card Tokenization
Card Tokenization (CoFT) was launched on 1 October 2022. According to RBI, more than 56 crore tokens have been issued through this system, whose value is Rs 5 lakh crore. For information, let us tell you that before the introduction of this facility, cardholders also have to enter card related information on Flipkart, Amazon and other e-commerce platforms. Due to which their safety remains at risk. But with the help of this facility, transactions are done through tokens. This not only increases security but also saves time.
