The Reserve Bank of India (RBI) has made some changes in the rules related to credit cards and debit cards. These new rules will come into effect from July 1, 2022. The Reserve Bank of India has announced the introduction of tokenization of card transactions from July 1, 2022. According to RBI, tokenized card transactions are more secure, as the card details are not shared here. At the same time, the limit of OTP based payment has also been increased by RBI.
What is tokenized system
Under tokenized services, a unique alternate code is generated for providing card facility. In this, instead of the 16 digit number of the card, the generated unique number is used. This is what is called a token. Using this, no third party will have the information of your card. For this, there will be no need to save your card information. But cardholders have to give consent for this system.
Last date
The last date for tokenization of the card was earlier 30 June 2021, but then it was extended to 31 December after appeals from banks and card companies. After this the deadline has been extended for six more months and now the last date for tokenization of credit and debit cards has been made 30 June 2022.
No one will be able to save your card details
There will be no need to save card details on any company like Flipkart, Amazon and other sites. There will be no need to give details again and again for its use. Customer will be able to use only by using the generated ID.
The rule was applicable from 1 October 2021
RBI had implemented the auto debit rules on 1 October 2021. At least 24 hours before the day of payment, it is necessary to send a message to the customer regarding auto debit. Under this, the limit of payment has been increased, now instead of Rs 5000 without OTP, payment of Rs 15000 can be made. That is, now you can do transactions up to Rs 15,000 without OTP.