RBI encourage digitisation of payments
Guidelines
on tokenisation
For Card Transactions
With
a view to encourage digitisation of payments and enhance financial inclusion
through digitisation, the Reserve Bank of India has decided to constitute a
High-Level Committee on Deepening of Digital Payments. The composition of the
Committee is under the chairmanship of Shri Nandan Nilekani, Former Chairman-
Unique Identification Authority of India.
The
Terms of Reference of the Committee are, a: To review the existing status of
digitisation of payments in the country, identify the current gaps in the ecosystem
and suggest ways to bridge them; b: To assess the current levels of digital
payments in financial inclusion.
c:
To undertake cross country analyses with a view to identify best practices that
can be adopted in our country to accelerate digitisation of the economy and
financial inclusion through greater use of digital payments; d: Suggest
measures to strengthen the safety and security of digital payments; e: To
provide a road map for increasing customer confidence and trust while accessing
financial services through digital modes.
f:
To suggest a medium-term strategy for deepening of digital payments; g: Any
other related item of importance. The Committee shall submit its report within
a period of 90 days from the date of its first meeting.
Earlier,
The Reserve Bank had released guidelines on tokenisation for debit / credit /
prepaid card transactions as a part of its continuous endeavour to enhance the
safety and security of the payment systems in the country. Tokenisation
involves a process in which a unique token masks sensitive card details.
Thereafter,
in lieu of actual card details, this token is used to perform card transactions
in contactless mode at Point of Sale (POS) terminals, Quick Response (QR) code
payments, etc.
These
guidelines permit authorised card payment networks to offer card tokenisation
services to any token requestor (third party app provider), subject to
conditions enumerated in these guidelines. A card holder may avail of these
services by registering the card on the token requestor’s app after giving
explicit consent. No charges shall be recovered from the customer for availing
this service.
All
extant instructions of Reserve Bank on safety and security of card
transactions, including mandate for Additional Factor of Authentication (AFA) /
PIN entry shall be applicable for tokenised card transactions also.
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