Reserve Bank of India (RBI) has extended the card-on-file (CoF) tokenization deadline by 6 months i.e., to June 30, 2022. Earlier the deadline was fixed till December 31, 2021. In March 2020, RBI had issued guidelines for the regulation of payment aggregators and payment gateways, prohibiting payment aggregators and merchants to store customer card credentials within their database or server from 30 June 2021.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
In September 2021, RBI extended the scope of tokenization from device-based tokenization to CoF tokenization services and barred merchants from storing actual card data while online transactions. RBI has fixed the deadline for card tokenization to January 1, 2022.