With a view to enhance security in RuPay card payments, the National Payments Corporation of India (NPCI) Wednesday launched tokenisation system for RuPay cards.
Tokenisation is the process of replacing the 16-digit payment card account number with a digital identifier known as a 'token' in mobile and online transactions. This does away with storing customer card details with merchants.
The move is in conformity with the Reserve Bank of India’s decision to make card tokenisation mandatory from January 1, 2022.
NPCI said the sensitive customer information will be stored in the form of an encrypted token that will process payments without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy.
Post the RBI announcement digital payments firm Visa became the first one to launch card-on-file tokenisation services in India.
Earlier, tokenisation was limited to only mobile phones and tablets of interested cardholders. But the RBI included consumer devices laptops, desktops, wearables (wrist watches, bands), Internet of Things devices to be included in the scope of tokenisation.
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