Card Tokenisation is now ready and banks inform that it will not impact customers. While lenders expect it be a smooth transition, thee is expected to be some initial friction since consumers and merchants shift to the new system. This move by Reserve Bank of India us expected to enhance card security framework for digital transactions.
- Tokenization will mean a card specific token which is generated and that token in future can be used for all online transactions.
- This will ensure enhanced security and in case of any data breach or hacking attempt at the merchant’s end, the customer
- Card details will still be protected as per information available.
- RBI also clarifies that contrary to some concerns, there would be no requirement to input card details for every transaction under the tokenization arrangement.
- Already HDFC Bank, ICICI Bank and SBI card have the card tokenization system place for online transactions, and few have device based tokenization (SBI cards with Samsung) for contactless NFC Payments.
- HSBC India in April had announced that it has collaborated with Google Pay and VISA to enable secured tokenization on its credit cards.
- Also a report reveals that there could be some amount of adaptation required for customers and customers will not have to tap in their 16 digit card number every time while making a purchase.
The current situation is said to be similar to when PIN was introduced for every transaction, and it took a lot effort but we have the lowest PIN-based frauds in the world.
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