Active Stocks
Sat Mar 02 2024 12:49:58
  1. Tata Steel share price
  2. 155.15 3.43%
  1. HDFC Bank share price
  2. 1,430.35 -0.06%
  1. State Bank Of India share price
  2. 773.05 0.49%
  1. Tata Motors share price
  2. 988.40 1.15%
  1. Wipro share price
  2. 522.65 0.67%
Business News/ Industry / Banking/  RBI to introduce these facilities for debit and credit card users. Details here
BackBack

RBI to introduce these facilities for debit and credit card users. Details here

The RBI is mulling introducing Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank level

RBI also announced the extension of the payments Infrastructure Development Fund (PIDF) scheme by two yearsPremium
RBI also announced the extension of the payments Infrastructure Development Fund (PIDF) scheme by two years

The RBI is also mulling introducing Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank-level, given the growing acceptance and benefits of tokenisation of card data, Governor Shaktikanta Das Das said on Friday while announcing the outcome of the policy meeting.

“It is now proposed to introduce CoF token creation facilities directly at the issuer bank level. This measure will enhance convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications. Instructions in this regard will be issued separately," Shaktikanta Das said.

At present, a Card-on-File(CoF) token can only be created through the merchant’s application or webpage

RBI introduced Card-on-File Tokenisation (CoFT) in September 2021 and began implementation on October 1, 2022. “So far, over 56 crore tokens have been created on which transactions with a value of over 5 lakh crore have been undertaken," read the Statement on Developmental and Regulatory Policies, issued on October 6.

What is tokenisation? 

Under tokenisation services, a unique alternate code is generated to facilitate transactions through cards. It is the process of substituting a 16-digit customer card number with a non-sensitive equivalent value, referred to as a token. This essentially means that a customer's card information will no longer be available on any Merchant, Payment Gateway, or 3rd party that helps in the processing of digital transactions today.

RBI extends PIDF scheme

RBI also announced the extension of the Payments Infrastructure Development Fund (PIDF) scheme by two years and the inclusion of PM Vishwakarma Scheme beneficiaries.

“It is now proposed to extend the PIDF Scheme by a further period of two years, i.e., up to December 31, 2025. Also, it is proposed to include beneficiaries of the PM Vishwakarma Scheme in all centres under the PIDF Scheme. This decision to expand the targeted beneficiaries under the PIDF scheme will provide a fillip to the Reserve Bank’s efforts towards promoting digital transactions at the grassroots level," Governor Shaktikanta Das said.

“The announcement by the Reserve Bank of India to extend the Payments Infrastructure Development Fund (PIDF) scheme tenure by another two years is a welcome move. It shows the commitment and focus of the regulator to increase the reach and penetration of digital payments further. We look forward to working extensively on our part as a leading payments player to accelerate the deployment of digital payment acceptance modes in the targeted geographies," said Ramesh Narasimhan, CEO, of Worldline India.

RBI doubles bullet repayment gold loan limits for urban co-op banks to 4 lakh

The central bank has announced doubling the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks to 4 lakh.

 

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Industry News, Banking News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 06 Oct 2023, 02:49 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,099.35-0.27%
₹1,431.15-0.06%
₹1,086.9-0.21%
₹124.850.72%
₹769.30.49%
Switch to the Mint app for fast and personalized news - Get App