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Industry experts welcome RBI’s extension of card tokenization

By Puja Sharma

December 27, 2021

  • API payments
  • card data
  • Digital Payments
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card data

This is a much-needed relief for the industry which has been working hard towards the on-ground implementation of COFt and integration with various stakeholders.

Payments Council of India (PCI), the representative body of payment system participants in India, welcomes the RBI decision to extend the timeline of storage of card data for another 6 months. This is a much-needed relief for the industry which has been working hard towards the on-ground implementation of COFt (card-on-file tokenization) and integration with various stakeholders.

PCI in its representation to RBI seeking an additional time of 6 months for implementation mentioned— While the industry has made considerable progress towards this change but given the vast width of the country to be covered a lot of work still needs to be done. Therefore, the industry will use this timeframe to confidently implement this solution in its entirety to achieve the true potential as envisioned by RBI.

About PCI (Payments Council of India)

Payments Council of India was formed under the aegis of IAMAI in the year 2013 catering to the needs of the digital payment industry. The Council was formed inter-alia to represent the various regulated non-banking payment industry players, to address and help resolve various industry level issues and barriers which require discussion and action.

The council works with all its members to promote payments industry growth and to support our national goal of ‘Cash to Less Cash Society’ and ‘Growth of Financial Inclusion which is also the Vision Shared by the RBI and Government of India.

Industry experts’ comments

Welcoming the RBI notification Vishwas Patel, PCI Chairman, and Director, Infibeam Avenues said, “We would like to thank RBI for giving industry this much-needed time to scale up its efforts and work towards achieving the true intent of this guideline as envisaged by the central bank. PCI will work with the industry and RBI to come up with solutions  to handle any use cases such as refunds, emanates, and post-transaction activity including chargeback handling, dispute resolution, reward/loyalty program, etc.,  that currently involves/requires the storage of CoF data by entities other than card issuers and card networks”

The industry will utilize the next 6 months to implement appropriate uniform solutions for seamless migration for cardholders as well as ensuring adequate security for storage.

Srinivasu MN, Founder, Billdesk, and Co-chair of the BBPS committee at PCI said, “We are very thankful to RBI for having provided an additional 6 months to the payments system participants and merchants to implement comprehensive card on file solutions. This will greatly benefit the ecosystem, in a seamless migration and also in building upon alternate mechanism(s) to handle various use-cases.  As an industry, we are firmly committed to achieving the RBI vision of enhanced customer protection of customer card credentials and have all embarked on that journey.”

Prabhat Singh Bhatia, co-founder of Falcon in the light of the extension of card tokenization said, “The RBI’s extension of card tokenization is a big relief and brings the much-required cheer among businesses and industry stakeholders who were grappling to meet the deadline of December 31. Card tokenization in itself is important from a consumer security perspective and the UIDAI has shown successfully how Aadhaar tokenization for authentication has helped curb misuse of Aadhaar numbers.

“With the Regulator extending the deadline to June 2022, it gives banks, acquirers, issuers, and merchants some time to create an implementation framework around this on priority, to help their customers make a smooth transition,” he added.

About IAMAI (Internet and Mobile Association of India)

Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, and in the last 16 years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, eCommerce, and mobile & digital payments among others.

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