RBI's Rules On Online Transaction To Be Effective From January 2022, Here's The 10 Key Points

As the 2021 is nearing to its end, people are eagerly waiting for 2022 and just with the starting of New Year, a couple of new guidelines of Reserve Bank of India (RBI) on online card transactions will come into effect. The guidelines state that from January 2022, e-commerce companies such as Amazon and Flipkart or online delivery aggregators such as Zomato won't be able to save card information on their platforms.

From starting January next year, customers won't be able to save their credit or debit card details on any e-commerce platforms.

Each time customers will have enter their card credentials when they will make an online payments.

However, customers can avoid this hassle by providing consent to e-commerce companies to tokenize their cards. After receiving a customer's consent, e-commerce platforms will ask the card network to encrypt details with additional factor authentication as needed.

After receiving encrypted details by the e-commerce companies, the customers can save that card for future transactions.

Presently, the Mastercard and Visa-provided cards can be tokenized by most leading e-commerce platforms.
The new guidelines must be adhered to for both credit and debit cards.

Customers won't need to pay any extra amount for tokenization of cards.

E-commerce platforms will show the last four digits of tokenized cards for customers to easily identify them, along with the issuing bank and card network name.

At last, tokenisation of card is not mandatory. Customers can choose to tokenise their cards to carry out quick transactions or enter card details otherwise