The new Debit & credit card rules are about to roll in the nation from October 1, 2022.
RBI has introduced the Tokenization norms so the rules for debit & credit cards will be changed from October 1.
As per the RBI, tokenization refers to the replacement of actual card details with an alternate code called the "token".
The added layer of security for debit & credit card holders by way of tokenization is expected to enhance users' digital payment experience.
RBI has made it mandatory for all credit & debit card data used in online, point-of-sale, & in-app transactions to be replaced with tokens by September 30.
When the new rule kicks in, customers will have to put in their entire card details each time they shop online.
With the implementation of new rules, merchants won't be able to store the card credentials of a shopper in any form on e-commerce sites.
Smaller merchants will benefit from network adoption of tokenization and they seems ready for the change.
The network will be authorized to have visibility data on user adoption of tokenization.
A customer can choose whether or not to let his / her card be tokenized.