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New Debit Card Rules From July 1, 2022

Card tokenization rules will now come into effect from July 1, 2022.

There will be uplifting news soon for all credit and debit card holders, as from July 1, 2022 onwards, online merchants will not be able to store clients’ card information.

The Reserve Bank of India (RBI) last year had issued debit and credit card tokenization rules, remembering client wellbeing. Under the standards, merchants were banned from putting away client card information in their servers.

These card tokenization rules will currently become effective from July 1, 2022.

RBI had made adoption of card-on-file tokens for domestic online purchases mandatory. The deadline for adoption of card tokens across the country was extended by six months from January 1, 2022 to July 1, 2022.

It will be stored as an encrypted “token” to assist clients with making secure transaction’s. These tokens will permit installment to be made without revealing client details. RBI rules make it mandatory to replace the original card data with an encrypted digital token.

Therefore from July 1, 2022, merchants should erase clients debit and credit cards data from their records.

The card tokenization system is not mandatory. Therefore if a customer has not given consent for tokenization of his or her card, then the customer will have to enter all card details like name, card number and card validity instead of entering the card verification value or CVV, every time while making an online payment.

Simultaneously, if a customer is agreeable towards card tokenization, the person will just need to enter the CVV or once secret phrase (OTP) details while doing the transaction.

Additionally tokenization is only applicable to domestic online transactions.

As per RBI, registration for a tokenization request is done only with explicit customer consent through Additional Factor of Authentication (AFA), and not by way of a forced or default or automatic selection of check box, radio button, etc.

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