According to industry sources and bankers, the Reserve Bank of India's plans to move toward card tokenization will affect a wide range of businesses, including large e-commerce enterprises, food delivery providers, and lenders, while increasing the use of cash.
To improve data security, the RBI released rules in March 2020 stating that retailers will not be allowed to keep card information on their websites. In September 2021, it published new instructions, giving businesses till the end of the year to comply with the rules and allowing them to tokenize.
Tokenisation is a data security technique in which card details are replaced by a unique code or token created by an algorithm, allowing online purchases to be completed without disclosing card details.
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