Now the way of digital payment is going to change in the country. The Reserve Bank is about to implement card tokenization for data security and to protect customers from online frauds.
Whose guidelines were issued by the Reserve Bank on January 8, 2019. If you also shop from the e-commerce website, then you enter the CVV number while making the payment, then it means that the e-commerce website already has complete information about your debit or credit card. Now e-commerce websites cannot store your card information. It will be replaced by a payment token system. Understand this, you do not need to enter your card details in tokenization. Instead, it has a unique alternate number.
which is called a token. Which is linked to your card and your card details are kept safe by using it. Meaning when you make payment after shopping on e-commerce website like Amazon or Flipkart, then you will not have to enter your 16 digit card number, instead you will have to enter token number. Each merchant will have a different token number. For which the e-commerce website has to tie up with the card payment companies. In view of the interests of customers in data security, the Reserve Bank is in no mood to give any concession.
Auto debit payment will be done through tokenization only. These rules will come into effect from January 1, 2022. From January 1, no e-commerce company can save the card details of customers. The token issued between the e-commerce merchant and the payment provider will not be able to be used anywhere. The chances of fraud will be greatly reduced. In this way, the process related to payment will also be simplified instead of being complicated. The rules of additional factor authentication will be applicable on auto debit of your debit card and credit card from October 1, 2021.
In this, the approval of the customer will be required for separate payment. Auto debit will be turned off on many utility payments. Now after shopping, you can tap the payment card up to a certain amount. But after October you cannot do this. For this you have to do payment authentication. Meaning some OTP will also have to be told. Apart from this, banks will have to send a notification 5 days before the payment due date. Customer approval will be required on the notification.
