RBI New Rules: Users of credit and debit cards are constantly growing in number. Additionally, the likelihood of fraud is rising. Card users must exercise the utmost caution in this circumstance. For this, RBI has already begun to tokenize cards. The RBI has created new channels for card on file for tokenization after realising the advantages of this scheme. Cardholders will be able to instantly link their accounts to various e-commerce through this new service.
RBI’s Card on File Tokenization
Regarding this, RBI provided information on Friday regarding the modifications to card on file tokenization. In September 2021, RBI began the Card on File Tokenization process. Additionally, this system began operation on October 1, 2022. Through this mechanism, the RBI has already made more than Rs 56 crore. whose combined worth exceeds Rs. 5 lakh crore.
Simplifying Online Shopping and Enhancing Card Security
It is important to note that in order to make transactions using credit and debit cards, the cardholder must complete all required fields on the website. Since the introduction of the token system, there presented a risk of card information being misused if all details were replaced by tokens. This keeps all card information secure and allows for cost savings while processing payments. The current system requires clients to create a token by going to the e-commerce website, but it can now only be done at the bank level. Customers will be able to effortlessly shop with just one token on all websites thanks to this.
RBI Maintains Repo Rate
The RBI also said that the repo rate would not change following a three-day meeting on Friday. Only 6.50 percent is stable. While clients investing in FDs are relieved by this move, news of a shock for customers anticipating lower home loan and car loan during the festival season has emerged.
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