New Delhi, Business Desk. The Reserve Bank of India (RBI) on Tuesday announced a change in the date of implementation of card tokenize service. Earlier Tokenize Credit and Debit Card facility was going to start from 1st July 2022. But RBI has extended the card tokenize service deadline from July 1, 2022 to October 1, 2022.

RBI announced

In fact, the Reserve Bank of India (RBI) has issued an order to tokenize credit and debit cards by July 1, 2022, for making online payments on merchant websites. Which has been changed for the time being. RBI has introduced the card tokenized system for the convenience and security of the customers.

What is tokenization?

Tokenization refers to the replacement of credit and debit card details with an alternate code called a token. Under this arrangement, online merchants will now have to use token numbers instead of card data to store their customers’ cards on their platform.

What are the benefits of tokenization?

Sharing card information makes fraud more likely. In such a situation, to prevent incidents of fraud, RBI has directed merchants to store special codes for online payments, which will not be your original card number.

Where will the token be valid?

One token is valid for one card and one merchant only. If you tokenize your credit card for one e-commerce site, the same card will have a different token on the other site. This is to prevent fraud. In addition, you can request tokens on any card to make transactions.

Will any fee be charged for tokenized?

No service charge will be levied for tokenizing the card. It will be completely free.

Is it mandatory to tokenize the card?

no, it’s not necessary. When you shop online, you either create a token and store it on a specific website for your future use. Currently, when you buy something, you enter your card details. However, now RBI has directed to delete any data stored before 30 June 2022. has been called for.

Edited By: Saurabh Verma