The Reserve Bank of India (RBI) has announced some enhancements to the extant framework on card tokenisation services. The device-based tokenisation framework advised vide circulars of January 2019 and August 2021 has been extended to Card-on-File Tokenisation (CoFT) services as well and card issuers have been permitted to offer card tokenisation services as Token Service Providers (TSPs). The tokenisation of card data shall be done with explicit customer consent requiring Additional Factor of Authentication (AFA). The enhancements are expected to reinforce the safety and security of card data while continuing the convenience in card transactions. Reserve Bank had in March 2020 that authorised payment aggregators and the merchants onboarded by them should not store actual card data. This would minimise vulnerable points in the system. On a request from the industry, the deadline was extended to end-December 2021 as a one-time measure.
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