RBI Merchants Urges to Introduce Plug Card Tokenization

RBI Merchant

Given that Netflix, Microsoft, Spotify, and many others are few among the top global service providers they have raised questions about the feasibility of making frequent payments through mandatory tokens from October 1st.

The Central bank went through an industry body to safeguard glitch-free operations in a regime for better efficiency.

The Merchant Payments Alliance of India (MPAI) is an association that represents merchants’ requests that the Reserve Bank of India (RBI) reports solving issues of repeated payments without cards and via tokens. Further mentions, “We request RBI to mandate card network, payment aggregators, and payment gateways to demonstrate its completion to fulfill tokenized transactions across all the apps. Needed workflow changes would be made that require ecosystem to make work no-card storage rules”

The central bank expects all merchants to delete customer debit and credit cards before October 1 and replace them with unique tokens. The tokenization process allows users to replace their card details with a unique code or token and keep the details of the card safe. Access to bank identification numbers (BINs) from the network is necessary to arrange IDs and process payments smoothly.