In an attempt to make payment card transactions secure and safe while maintaining customer convenience, RBI has recently released a circular on Tokenisation for Card Transactions.
According to the guidelines of RBI, no entity in the card transaction/payment chain, such as merchants, are allowed to store the actual card data of customers beyond January 1, 2022. In addition, RBI has listed a few key conditions to be fulfilled by card issuers to be able to offer card tokenisation services as Token Service Providers (TSPs).
What is the next step for payment system providers and participants to ensure complete and ongoing compliance? How to simplify the tokenization process with respect to RBI’s guidelines?