Card payment method: RBI Tokenization Rules: The card payment method you use will change from January 1, 2022. A tokenization system will work for this. The Reserve Bank of India has set rules (new rules for card payments) in this regard. In this, special arrangements have been made regarding the privacy of the cardholder’s data. RBI has issued RBI tokenization rules regarding data storage.
What is card payment system now
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That is, from January 1, the customer will not need to share his card details with any third party app. Think of it like this that you will not have to share card information with any food delivery app Zomato cab aggregator Ola or Uber. Till now it happens that the complete details of the customer’s card are saved on these apps, due to which there is also a risk of any kind of fraud with the customer. But the tokenization system will not pose such a threat. Although whether to take this service or not, it depends on the desire of the customers. There will not be any pressure on the customers to take this nor will it be compulsorily enforced by the banks/card issuing companies.
Further, citing the risks associated with card payments, the Central Bank said that several entities requiring card payment transactions actually store the user’s card details which increases the risk of data leakage and the card data being stolen. Also, several instances have been reported where card details were stolen by the merchants and were later compromised. Stolen card data can also be used to extend frauds within India through social engineering techniques, the release added.
Responsibility to follow the rules
The card is responsible for following the network rules. This rule also applies to payments made through CoFT mobiles, laptops, desktop smart watches, etc. Tokenization facility will be provided only for the cards issued by the token service provider. The ability to tokenize and de-tokenize card data rests with the same token service provider. The tokenization of the card data will be done with the consent of the customer. AFA will also be used for tokenization.
The rules for withdrawing money from an ATM will change
From January 1, 2022, a new fee will be charged for withdrawing money from banks’ ATMs beyond the prescribed free limit. The Reserve Bank of India (RBI) has allowed banks to withdraw cash or increase fees for other transactions beyond the free monthly limit set by ATMs from next year. Under this, bank customers will have to pay Rs 21 for each transaction, which is currently Rs 20, if they make a free withdrawal or transaction beyond the standard limit of other facilities.
