Reserve Bank of India on Thursday extended the deadline for Regulation of Payment Aggregators and Payment Gateways to June 30, 2021. This means now, customers will not need to enter their card details every time they order something from an e-commerce platform and Merchants like Amazon and flip will continue to save customers' card details until June 30 2022.
RBI today released an official notification which stated, “Guidelines on Regulation of Payment Aggregators and Payment Gateways”, the authorised non-bank payment aggregators and merchants on-boarded by them were prohibited from storing card data (CoF) from June 30, 2021. At the request of industry stakeholders, this timeline was extended to December 31, 2021."
It said, "In light of various representations received in this regard, we advise as under, the timeline for storing of CoF data is extended by six months, i.e., till June 30, 2022; post this, such data shall be purged."
RBI also advise industry stakeholders to formulate an alternative mechanism for the same. "industry stakeholders may devise alternate mechanism(s) to handle any use case (including recurring e-mandates, EMI option, etc.) or post-transaction activity (including chargeback handling, dispute resolution, reward / loyalty programme, etc.) that currently involves/requires the storage of CoF data by entities other than card issuers and card networks," it said.
Earlier, March 2020, RBI issued guidelines that restricted merchants from saving customers' card details in order to boost security. In September this year, the regulatory body enhanced its guidelines on card tokenisation services in order to improve safety and security. "
What does it mean for customers transacting online with cards?
From July 2022, customers will not be able to save their debit or credit card details on any e-commerce platform. They will have to re-enter detail of their debit, credit card every time they conduct online transactions.
Customers will not be charged extra for tokenisation of cards and tokenisation of card is not mandatory. Customers can choose to tokenise their cards to carry out quick transactions or enter card details otherwise