The token system was already to be implemented, but the Reserve Bank of India has extended the deadline for its adoption by three months to 30 September. RBI took this step after considering the suggestions received from different parties.
The system of card tokenization will start next month
Credit card issuing company SBI Card and Payment Services has token system Preparation has been completed at the ground level for adoption. The purpose of this system, which will be released in October, is to protect people from fraud and prevent data theft. Under the token system, the code number i.e. token number is used instead of the actual card details. This arrangement of the Reserve Bank of India is considered secure for transactions as it does not share the actual card details with the merchant or POS at the time of transaction.
SBI Card Managing Director and Chief Executive Officer (CEO) Ram Mohan Rao Amara told PTI on Thursday, “As far as preparedness is concerned, in terms of technology, in terms of integration with all networks, we Ready with all networks like Visa, Mastercard and Rupay. Regarding the card token system, Amara said, “It is a good initiative to protect the interest of the customers and keep the data secure.”
The new system came into effect from October 1
The token system was already to be implemented, but the Reserve Bank of India has extended the deadline for its adoption by three months to 30 September. RBI took this step after considering the suggestions received from different parties. Earlier, its deadline was June 30. Amara said, … a large part of the spending is at the level of big traders, they have already been given tokens. In the case of small traders, the process is going on.
SBI Card, the company of the country’s largest bank SBI, has also announced to issue a new credit card. Cashback has been specially looked into in this. There is a new trend among consumers…they demand instant cashback, the official said. Keeping this attitude in mind, we are issuing this credit card. This is the first card of its kind in the industry.
Regarding the way customers spend, Amara said that the figures for the last five months are very strong. It crossed Rs 1,000 billion in July, which has now become a new trend in the industry. He said that the reason for this is the increase in the expenditure done after thinking. This has increased especially in areas where there was a slowdown earlier. Domestic travel and hotel business have reached pre-Covid levels.
Why tokenization’s life has increased
According to the Reserve Bank, different parties had cited problems in implementing the guest checkout framework. Guest checkout means that the customer can make purchases from any store without logging into the account and without saving any information. There was some problem in implementing it, after which there was a demand to stop the tokenization for a few days. At the same time, the Reserve Bank was informed that there has been no increase in the number of transactions using the token. The Reserve Bank has said that these matters will be resolved after talking to all the parties. In view of this, the period of 3 months was extended to implement tokenization. After all, it is being implemented from 1 October.
What is card tokenization
In card tokenization, the customer will make the payment by debit or credit card, but no information will be saved in the merchant’s system. When the transaction is done with the card, a unique code of the card will be generated. This code will act as the 16 digits of the customer’s card. This code will be such that the merchant will not be able to read it. This will get rid of fraud and will also protect the data.