Deadline for RBI tokenisation extended by 6 months till June 30, 2022
The RBI has delayed the tokenization deadline by six months, which is a significant step. “The timeline for storing CoF data is extended by six months, i.e., till June 30, 2022,” the RBI stated in a statement.
Restriction on keeping of actual card data [i.e. Card-on-File (CoF)], RBI noted in a notification “We advise as follows in light of various representations received in this regard: a) The deadline for storing CoF data is extended by six months, to June 30, 2022; after that, such data will be purged; and b) in addition to tokenization, industry stakeholders may devise alternate mechanism(s) to handle any use case (such as recurring e-mandates, EMI option, etc.) or post transaction activity (such as chargeback handling, dispute resolution, reward / loyalty programme, etc.) that currently involves / requires storage of CoF data “
The RBI had previously set a December 31 deadline for tokenization. As a result, beginning January 1, shops will be unable to hold user card information and will be required to replace each card number with a randomly generated token number.
“According to our circular DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020 titled “Guidelines on Regulation of Payment Aggregators and Payment Gateways,” authorised nonbank payment aggregators and merchants on-boarded by them were prohibited from storing card data (CoF) as of June 30, 2021. This deadline was extended to December 31, 2021, at the request of industry stakeholders, via circular CO.DPSS.POLC.No.S33/02-14-008/2020-2021 dated March 31, 2021. “Regulations on Card-on-File Tokenisation (CoFT) were also issued via circular CO.DPSS.POLC.No.S-516/02-14-003/2021-22 dated September 07, 2021 on “Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services,” RBI said in a statement.
To Read Official Notification Download PDF Given Below :