Tokenization Rules Take Effect Tomorrow – Rbi Deputy Governor Says System Ready, 35 Crore Tokens Created

Reserve Bank of India Deputy Governor T Rabi Sankar said on Friday that the system is ready for tokenization, which will go into effect on October 1. From Saturday, merchants will no longer be allowed to store customer card data under the new card on file tokenization guidelines.

Sankar said around 35 crore of tokens have already been created and around 40% of transactions in September amounting to Rs 63 crore were made using tokens.

“We have spoken with all stakeholders to ensure the transition is smooth,” he said.

The RBI Deputy Governor added that extensions were granted wherever necessary. “We’ve given many extensions to make sure the system is comfortable moving to tokenization,” he said, adding that stakeholder feedback suggests the system is read perfectly.

Sankar said he understands there are a few participants who aren’t ready, but it’s probably because of their reluctance to comply. “We should not delay efforts to ensure customer protection due to some stragglers,” he said at the press conference after the monetary policy announcement by RBI Governor Shaktikanta Das.

It should be noted that tokenization is voluntary, customers can choose whether or not to have their card tokenized. If not tokenized, from October 1, 2022, cardholders will only need to enter the full card number, CVV and card expiration date for each online transaction. No fees will be applied for credit and debit card tokenization.