Starting from July 1, 2022, online merchants will be unable to store the card data of customers, bringing big relief to the common man. Last year, debit and credit card tokenization rules were issued by the RBI, considering customer safety. Under these rules from the RBI, store merchants were restricted from storing the customers’ card data in their servers. The rule of card tokenization will come into effect from July 1.
For domestic online purchases, the RBI has made the adoption of card-on-file tokens mandatory. It was from January 1, 2022 to July 1, 2022 that the deadline for adoption of card tokens throughout India was extended.
In order to help the customers make a secure transaction, there will be ‘encrypted tokens’. With this, the payments will be made without the disclosure of customer details. The RBI guidelines have made it mandatory to bring up an encrypted digital token in place of the original card data.
Beginning from July 1, the merchants will have to delete the customer data of debit and credit cards from their records.
