Making online payments from the New Year will bring a new experience to users as RBI has proposed new debit card rules. These rules will be implemented on credit card users as well from the first day of the first month i.e. January 2022 across pan India. As per the governing body RBI, neither merchants nor payment gateways can store customers’ card and transaction details.
This will also affect the customers as they have to tokenize their debit and credit cards before making payments online. Read to know the full details.
What Are The New Rules Related To Debit And Credit Card?
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The guidelines for merchants have been proposed last year in the month of March stated that they cannot store the information of users on their websites. Another set of rules was proposed a few months ago this year that included a deadline for the companies, banks, and merchants. Here’s the full statement issued by RBI
Also Read: How to Transfer Money Using UPI Without Internet?
“With effect from January 1, 2022, no entity in the card transaction/payment chain, other than the card issuers and/or card networks, shall store the actual card data. Any such data stored previously shall be purged.”
In simple words, merchants have to delete the data of their customers that including their card numbers.
New Steps For Making Online Payments
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From now on, they will operate via token cards issued to each customer at the time of making payment.
This will be done from the customer’s end once they opt for payment. Each and every token is a combination of unique numbers that will mask the original card number of a user. After tokenization, users will have to provide the CVV number and OTP received at their registered mobile number.
Also Read: RBI’s New Policy Allow Cash Withdrawal Without ATM Cards
Merchants are allowed to store the proxy number of customers’ cards for further process. In case a customer makes use of a new debit or credit card then a new token should be generated for the transaction.
This method is applicable for all NFC-enabled transactions, online payments via UPI.