RBI to set new debit, credit card rules from July 1

Big news for credit card and debit card holders! From July 1, 2020, your card details will get erased from all e-commerce sites, apps, and  OTT platforms.

According to the new rules set by the Reserve Bank of India (RBI), it will be mandatory for users to adopt card-on-file tokenization for online purchases so as to safeguard bank transactions. Hence, in order to make online payments, one will have to restore their card deets and generate a unique token from July onwards.

Netflix, Amazon, Swiggy, and Zomato are some of the merchants on the list that will no longer be able to save users’ card details, and for every transaction, one will need to generate a unique token to make card payments seamlessly.

This new system intends to ensure the safety and security of cardholders as well as contribute to the growth of digital transactions.

Reportedly, the tokenization system will allow users to hide their card details and only the last four digits of the card number will be shown in the app. In every transaction, a unique token number will take the user to a payment gateway allowing the bank to generate an OTP for verification.

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