RBI Update: RBI has simplified the process of card tokenisation, now customers will get this special facility..

In October this year, the Governor of the Reserve Bank of India (RBI) presented a proposal regarding the facility of Card On File Tokenization Creation Facility. Now this facility has been started in banks. This information was given by RBI on 20 December 2023. RBI said that this facility has been extended to the bank level.

All customers will get the benefit of this facility. Now he will be able to make online payments easily. Apart from this, soon this facility will be linked to many e-platforms. RBI said in its press release that now the card issuing banks or financial institutions will be able to provide the facility of card on-file tokenization. This card will be issued through mobile banking or internet banking.

In this, customer approval and AFA validation will be mandatory. In such a situation, the token card will also be shown on the merchant page in the holder's account.

What is card tokenization?
For online transactions, the customer has to provide all his card details on the website. In such a situation, the chances of theft or misuse of this data increases. For this reason, the card token facility has been started to provide more security to the customers. In this, all the data of the customers is kept safe. This reduces many cases like data theft as well as increases the number of transactions.

Card on file tokenization creation facility will start at the bank level. After this, an account will be linked to many e-platforms which will make online shopping easier.

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