The Reserve Bank of India has extended the deadline for ecommerce platforms to comply with the new tokenisation rule by six months. While the earlier deadline was January 1, it has now been extended to July 1, 2022.
As per the rule, ecommerce companies like Amazon and Flipkart as well as online delivery aggregators like Zomato and Swiggy will not be able to save card details on their website. The users making online transactions will either need to enter credit or debit card details each time they make a payment or will have an option for a certain card to use as a recurring payment method.
The guidelines were first issued by the RBI in March 2020. In September, the guidelines were enhanced to not allowed to save card details or tokenise to improve safety and security.
Customers can tokenise their cards only with explicit consent that requires Additional Factor of Authentication (AFA).
The method of tokenisation will replace card details in online transactions with tokens, which are unique codes generated by an algorithm. This will make online transactions safer for shoppers by not exposing their card details.
