Bank Credit Card, Debit card payment practice to change: Details of this new development to make transactions safe here

Tokenization of Credit Card, Debit Card: Worried about Credit, Debit Card frauds? The Reserve Bank Of India is all set to allay your fears by introducing the "tokenization" system which will allow users to create an alternate 16-digit unique code that can replace the actual credit or debit card details before making a payment or transaction. The 16-digit code will be unique for every debit or credit cards. This will help prevent skimming of card date and stop fraudulent transactions. 

The official RBI notification says it has now been decided to permit authorised card payment networks to offer card tokenisation services to any token requestor (i.e., third-party app provider). "This permission extends to all use cases/channels [e.g., Near Field Communication (NFC)/Magnetic Secure Transmission (MST) based contactless transactions, in-app payments, QR code-based payments, etc.] or token storage mechanisms (cloud, secure element, trusted execution environment, etc.)," RBI says. 

Mobile phones and tablets only

RBI statement says, "For the present, this facility shall be offered through mobile phones/ tablets only. Its extension to other devices will be examined later based on experience gained."

Free service

RBI further says that no charges should be recovered from the customer for availing this service. Moreover, "all other instructions related to card transactions shall be applicable for tokenised card transactions as well. The ultimate responsibility for the card tokenisation services rendered rests with the authorised card networks," says the central bank.