The Reserve Bank of India (RBI) has extended the deadline for tokenisation of debit and credit cards by another three months to September 30, 2022. The RBI had earlier set a deadline of June 30, whereby merchants and payment aggregators had to delete all card details and replace it with tokens.
The framework for CoF Tokenization (‘CoFT’) Tokenization was mandated by the RBI as an alternative to card storage. According to this framework, cardholders can create Tokens” in lieu of card details and then these tokens can be stored by the merchants for processing the transactions in future. Hence, this system is also as convenient for the cardholders. This framework is safer as the card details are not shared with merchant.
