The Payments Council of India (PCI), a representative body of the non-banking payment industry in India, welcomed the Reserve Bank of India’s (RBI) move to enable the issuing of tokens for cards via internet and commercial banks.
This RBI decision, announced through a recent circular, will empower cardholders by offering them an additional option to tokenize their cards for multiple merchant sites through a streamlined and unified process.
Card-on-File Tokens (CoFT) for a card can now be enabled through mobile banking and internet banking channels, providing a convenient and efficient means for users to secure their transactions across various platforms.
With over 56 crore tokens already created, CoFT has demonstrably improved transaction security and approval rates. PCI had submitted representations to the RBI, outlining the industry’s readiness and preparedness for tokenization, along with suggestions to fast-track the process. The industry members remain committed to a smooth and successful implementation of tokenization.
Welcoming the RBI move, Chairperson of Card Networks Committee under PCI, and Group County Manager of Visa, Sandeep Ghosh, said, “We welcome this circular of RBI for enabling tokenization through card issuing banks. This will be a game changer for the payments industry and will also enhance convenience for card holders.”
Praveena Rai, Chief Operating Officer at National Payments Corporation of India (NPCI), and Co-Chairperson, the Payment Council of India, remarked, “This move will provide consumers with greater autonomy in managing card tokens, making it easier to modify and control them. This circular reflects the ongoing enhancement of security in the digital payment ecosystem every day. I am confident that this step will boost consumer trust.”
Rai further said that this strategic initiative reflects the RBI’s commitment to enhancing the security and flexibility of digital transactions, further aligning with evolving consumer preferences and technological advancements in the financial landscape.
The RBI’s Card-on-File (CoF) token facility allows cardholders to create tokens and link them to their accounts with various e-commerce applications.
Tokenization replaces a card’s 16-digit number with a unique token that is specific to the user’s card and merchant. The token hides the card’s details, so that if there is a data leak from the merchant website, hackers cannot misuse the card.
Payments Council of India (PCI) works with all its members to promote payments industry growth and to support our national goals of ‘Cash to Less Cash Society’ and ‘Growth of Financial Inclusion’ which is also the Vision Shared by the RBI and the Government of India.
PCI works closely with the regulators i.e. Reserve Bank of India (RBI), the Finance Ministry, and any similar government, departments, bodies or Institutions to make ‘India a less cash society.
(This news report is published from a syndicated feed. Except for the headline, the content has not been written or edited by OpIndia staff)
