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All the credit card and debit card holders are going to receive good news soon. It is to be noted that new debit card rules will be implemented from 1 July 2022. The online merchants will not be able to store the card data of customers any more, starting from 1 July 2022. The Reserve Bank of India (RBI) issued debit and credit card tokenisation rules last year, in 2021 focusing on customer safety.
According to the rules, merchants were not allowed to store customer card data on their servers. It is important to be noted by all the credit and debit card holders that the card tokenisation rules are set to come into effect from 1 July 2022 as per the latest information. The Reserve Bank of India (RBI) has announced certain rules that will be implemented soon.
Earlier, the RBI had made the adoption of card-on-file tokens for online domestic purchases compulsory. Later, the deadline for the adoption of card tokens was extended by six months across the country, which is from 1 January 2022 to 1 July 2022.
It is important to remember that from 1 July 2022, merchants will be forced to delete customers' debit and credit card data from their records. There are certain other points that everybody should know regarding card tokenisation.
The Reserve Bank of India (RBI) has not made the card tokenisation system mandatory for all the debit and credit card holders.
The customers who are willing to tokenise their cards, have to enter the CVV or one-time password (OTP) details while doing the transaction.
The Reserve Bank of India (RBI) has stated that the tokenisation request is done only with explicit customer consent through Additional Factor of Authentication (AFA). Nobody can force the customers to opt for it.
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