Home / News / India /  NPCI rolls out mechanism for tokenisation of RuPay cards
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National Payments Corporation of India (NPCI) on Wednesday launched NPCI Tokenization System (NTS) to support tokenisation of RuPay cards. The launch comes after the Reserve Bank of India mandated tokenisation of cards from 1 January 2022.

Card tokenisation refers to a process that replaces details of a card, such as its number and CVV, used for making a transaction with an encrypted algorithmically generated token. The token is generated either by the card issuer or payments network.

This process is expected to secure sensitive financial data of customers and curb cyber frauds.

NTS will support tokenisation of RuPay as an alternate to storing card details with merchants.

“Based on the set of guidelines that have been mandated by the RBI, sensitive customer information is to be stored in the form of an encrypted ‘token’ to help secure transactions. These tokens then allow payments to be processed without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy," NPCI said in its statement.

Acquiring banks, aggregators and merchants can get themselves certified with NPCI as token requestors and save the token reference number against all card numbers saved, as per NPCI.

“All these businesses can maintain their RuPay consumer base utilizing TROF (Token Reference On File) for future transactions initiated by their respective RuPay consumers," said NPCI.

“RBI’s guidelines on card tokenization is to enhance the safety of the digital payments ecosystem in the country. We are confident that NPCI Tokenization System (NTS) for tokenization of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely," said Kunal Kalawatia, Chief of Products, NPCI.

Apart from enhancing security, NPCI said, tokenization is also expected to reduce friction in the payment process by providing a faster checkout experience to customers.


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