In a circular issued, the Reserve Bank of India (RBI), instructed all parties—aside from card networks and card issuers—to delete all previously stored Card-on-File (CoF) data by October 1, 2022. The RBI has granted the respite in order to facilitate a smooth transition to a different payment system. In addition, the merchant and its PA involved in the online transaction may keep the data for a maximum of T+4 days or until the settlement date, whichever comes first, aside from the card issuer and the card network.
The data needs to be erased when the transaction has been settled. Up to January 31, 2023, the acquiring banks maintain CoF data on file for use in managing any post-transaction activity. Furthermore, the RBI will take the proper action, which may include placing business limitations, if any of the parties fails to comply.
What is Card-on-File (CoF) Data?
In the event that a card is reissued, the Card-on-File Data Inquiry is intended to give information about the merchants that cardholders may have kept their cards on file with and whether or not those merchants have received updated card information.
Working of Card-on-File Data:
By recognising transactions started using Point of Sale Entry Mode 10 (PEM 10), Card on File transactions can be flagged in the most transparent way possible. In order for the industry to accept the new PEM, Visa launched this transaction type in October 2016. Visa will employ a variety of ways to identify merchants for a given cardholder where that cardholder’s credential is probably maintained on file by that merchant until PEM 10 receives widespread industry implementation.
Things to Remember about Reserve Bank Of India (RBI):
- Governor of Reserve Bank of India: Shaktikanta Das
- Headquarters of Reserve Bank of India: Mumbai
- Reserve Bank of India is a Statutory body. The RBI is a not a constitutional body.
- The RBI was established under the Reserve Bank of India Act, 1935.