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RBI extends card tokenization deadline until June 30th

Mumbai: On Thursday, the Reserve Bank of India extended the card tokenization deadline by six months from the previous deadline of 31 December 2021 to 30 June 2022.

“The timeline for storing CoF (card-on-file) data will be extended by 6 months, which means until June 30, 2022. Posting this will remove such data,” the notice said. I am.

“In addition to tokenization, industry stakeholders currently include or require the storage of CoF data by card issuers and non-card network entities to handle use cases and post-transaction activities. May be devised. “

RBI’s card tokenization guidelines require that actual card data be replaced with encrypted digital tokens. Digital tokens are used to facilitate and authenticate transactions.

Devaluation of sensitive card details reduces risk and reduces sensitive data vulnerabilities. However, industry groups have requested the RBI to extend the card tokenization deadline beyond December 31, 2021.

The Indian Merchant Payments Alliance (MPAI) and the Digital India Foundation Alliance (ADIF) recently requested the central bank to extend the merchant’s CoF tokenization deadline to 31 December.

Citing some operational challenges that hinder the transition to a token-based payment ecosystem, industry groups have expressed concern about the industry’s readiness for the RBI Directive on card-on-file tokenization.

MPAI and ADIF state that “ecosystem preparation” is a set of processes that runs using a stable API (application programming interface) document for tokenized transactions. The digital payment ecosystem is far from consumer solutions, and merchants will not be able to successfully process tokenized transactions unless the regulated entity is compliant.

https://www.siasat.com/rbi-extends-card-tokenisation-deadline-till-june-30-2246883/ RBI extends card tokenization deadline until June 30th

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