Why is it in the news ?
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The Reserve Bank of India has decided to permit authorised card payment networks to offer card tokenisation services to any token requestor- third party app provider- for debit, credit or prepaid card transactions.
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However, the central bank has made it clear that no charges should be recovered from the customer for availing this service.
More in the news
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Tokenisation involves a process in which a unique token masks sensitive card details.
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The token is then used to perform card transactions in contact-less mode at Point Of Sale (POS) terminals, Quick Response (QR) code payments.
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RBI guidelines permit authorised card payment networks to offer card tokenisation services to any token requestor, subject to conditions.
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A card holder can avail of these services by registering the card on the token requestor’s app and after giving ‘explicit consent’.
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For additional factor of authentication, PIN entry shall be applicable for tokenised card transactions also.
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Adequate safeguards shall be put in place to ensure that PAN cannot be found out from the token and vice versa by anyone except the card network
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This facility will be offered through mobile phones and tablets only. Its extension to other devices will be examined later based on experience gained.
Source
The Hindu.