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      New RBI Rules on Online Card Transactions in 14 Points

      E-commerce companies such as Amazon and Flipkart or online delivery aggregators such as Zomato won’t be able to save card information on their platforms, under new guidelines from the Reserve Bank of India (RBI) starting from 1st January, 2022.

      As per the new rules, customers carrying out an online transactions on any e-commerce platform will need to enter their debit or credit card details each time starting next year.

      Customers can choose to provide consent to the platforms to tokenise their cards.

      RBI issue guidelines which restricted merchants from saving customers’ card details in order to boost security in March 2020.

      The regulatory body enhance its guidelines on card tokenisation services in order to improve the safety and security in September, 2021.

      RBI had said in a press release :

      “The tokenisation of card data shall be done with explicit customer consent requiring Additional Factor of Authentication (AFA),”.

      Tokenisation helps replace card details with a unique algorithm-generated code, or token, which allows online purchases to go through without exposing card details.

      New RBI Rules on Online Card Transactions in 14 Points :

      1. Customers will not be able to save their debit or credit card details on any e-commerce platform starting from 1st January, 2022.
      2. Customers will have to re-enter card details every time they conduct an online transaction.
      3. Also customers can provide their consent to e-commerce companies to “tokenise” their cards.
      4. After receiving a customer’s consent, e-commerce platforms will ask the card network to encrypt details with additional factor authentication as needed.
      5. When the e-commerce platform receives the encrypted details, customers can save that card for future transactions.
      6. For now only Mastercard and Visa-provided cards can be tokenise by most leading e-commerce platforms.
      7. It is expected that cards from other financial services should be able to be tokenised soon.
      8. The new RBI guidelines must be adhered to for both credit and debit cards.
      9. The new guidelines are not applicable to international transactions.
      10. Only domestic cards and transactions fall under the gamut of the new RBI guidelines.
      11. Customers won’t need to pay any extra charge for tokenisation of cards.
      12. E-commerce platforms will show the last four digits of tokenised cards for customers to easily identify them, with the issuing bank and card network name.
      13. Tokenisation of card is not mandatory.
      14. Customers can choose to tokenise their cards to carry out quick transactions or enter card details otherwise.
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      THANK YOU FOR READING.

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