RBI gave information

According to the information given by RBI, the purpose of these new rules is to make payment through credit and debit cards more secure than before. Actually, for the last few days, many reports of fraud with credit-debit cards were coming to the fore. But after the implementation of the new rule, if customers do transactions online, point of sale (POS) or app with debit or credit card, then all the details will be saved in the encrypted code.

Know what is this tokenization system?

The token system converts all debit and credit card data into ‘tokens’. By which the information of your card is kept hidden in the device. RBI has said that any person can convert the card into token by requesting the token bank. There is no charge to the cardholder for tokenizing the card. If you convert your card into a token, then your card information can be saved in the token on any shopping website or e-commerce website.

In this new rule of RBI, without taking approval from the customer, his credit limit cannot be increased. Not only this, if any payment has not been made then the charges or taxes etc. cannot be capitalized while adding interest. This will not harm the customers, many times such incidents come to the fore when any new steps related to many cards are taken by the banks or by the credit card issuing institution.

Fraud cases will be less

The Reserve Bank says that due to the implementation of the new rule, the cases of fraud will be reduced due to the implementation of the payment system. Actually, due to leaking of credit card or debit card information of customers, the risk of fraud with them increases. The Reserve Bank has said that at present, e-commerce websites, merchant stores and apps etc. store the card details after the customers make payment with debit card and credit card. In many cases, merchants are left with no option but to store the card details before the customers. If these details are leaked, there is a possibility of loss to the customers. But when the new rules are implemented then such incidents will be stopped.

There is a lot in the new provision

The most important thing in the new provisions of RBI is that the information related to the transactions done through the card will not be given to the ‘branding partner’. These provisions may affect the business model of companies operating in the co-branded card segment, as these companies entice customers with various offers based on these transactions. In such a situation, now the customers will not have the fear of falling in any kind of hoax. Also, there will be no risk of financial loss regarding the card.

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From October 1, the Reserve Bank of India’s card-on-file tokenization (CoF Card Tokenization) rule is going to change. The Reserve Bank of India says that after the change in the tokenization system, the payment experience of cardholders will improve and debit card and credit card transactions will be more secure than before. According to RBI, if the customer transacts online, point of sale (POS) or app through debit or credit card, then all the details will be saved in the encrypted code.

Let us tell you that till now it happens that when we do a transaction with debit or credit card at any POS, online or on the app, then its details are saved in the company’s server. Only when you go to make payment online or on the app again, the company does not ask you for full details. There your account number, card number etc. are already present there. All you have to do is enter the CVV again and the payment is done. This will not happen from October 1 because there will be no data store in the company’s servers. They will get every information related to the card in an encrypted code which cannot be read.

What will happen after the new rules are implemented?

Under the new arrangement, the Reserve Bank has prohibited payment companies from storing the data of customers’ credit cards or debit cards. Payment companies will now have to provide an alternate code in lieu of the card, which is named Token. These tokens will be unique and the same token will work for multiple cards. Once this is implemented, for online payment, instead of using the card directly, a unique token will have to be used.

Such people will not be able to take advantage of Atal Pension Yojana

Atal Pension Yojana is one of the popular pension schemes of the government. Those investing in this scheme get a monthly pension of up to Rs 5000. Now there is going to be a big change in this plan from October 1. Now under new rulesIncome TaxTaxpayers cannot take advantage of this scheme.

This new rule will be effective from October 1, 2022. In such a situation, taxpayers still have a chance to take advantage of Atal Pension Yojana. You can invest in it even if you are a taxpayer till September 30. According to the existing rules, any Indian citizen between the age of 18 years to 40 years can join this pension scheme of the government, irrespective of whether he pays income tax or not.

Demat account will be more secure

If you are a demat account holder and through this you buy or sell shares in the stock market, then this news is very important for you. The National Stock Exchange (NSE) had issued a circular on 14 June. Accordingly, it is very important for demat account holders to enable two-factor authentication by September 30, 2022.

If you do not enable Two-Factor Authentication, you will not be able to login to your Demat account from 1st October 2022. NSE said in this circular that the account holder will have to use biometric authentication as an authentication factor to login to his demat account. Along with this, the other way can be the knowledge factor. This can be a password, PIN or any position factor, which is only known to the user.

The post Big Alert ! Banking and these rules related to you will change from October 1, deal with the necessary work or else there may be loss first appeared on Rightsofemployees.com.

According to RBI, the purpose of these new rules is to make payment through credit and debit cards more secure than before.

When the customer transacts online, at point of sale (POS) or on the app, all the details will be saved in the encrypted code.

What is this tokenization system

Under the new arrangement, the Reserve Bank has prohibited payment companies from storing the data of customers’ credit cards or debit cards.

Payment companies will now have to provide an alternate code in lieu of the card, which is named Token. These tokens will be unique and the same token will work for multiple cards. After this is implemented, instead of using the card directly for online payment, a unique token will have to be used.

According to this new rule of RBI, without taking approval from the customer, his credit limit cannot be increased. Also if no payment has been made then charges or taxes etc. cannot be capitalized while adding interest.

Token system will reduce fraud cases: RBI

RBI says that with the implementation of the system of payment with tokens in lieu of cards, the cases of fraud will be reduced. Right now, the risk of fraud with customers increases due to leaking of credit card or debit card information. The new system is expected to reduce such cases of fraud.

The Reserve Bank says that at present, e-commerce websites, merchant stores and apps etc. store the card details after the customers make payment with debit card and credit card.

In many cases, merchants are left with no option but to store the card details before the customers. If these details are leaked, there is a possibility of loss to the customers. According to the Reserve Bank, these dangers will be reduced with the new rule.

Will not be able to give information to co-brands

In the new provisions of RBI, it has been said that the information related to the transactions done through the card cannot be given to the branding partner. These provisions may affect the business model of companies operating in the co-branded card segment, as these companies entice customers with various offers based on these transactions.

These companies did not get relief

Meanwhile, RBI has not given any relief in implementing the rules which are going to affect fintech companies. Apart from this, some of these provisions are for co-branded cards, including Slice, Uni, OneCard, LazyPay (Fi), PayU’s, Jupiter etc.

Deadline has been extended twice

The RBI had extended the deadline for storing card-on-file data from December 31, 2021 to June 30, 2022, taking into account the suggestions received from various stakeholders. Later it was again extended till 30 September.

Now the Reserve Bank is not considering to extend this deadline further. This means that now the payment companies will have to delete the credit card and debit card data of the people after 30 September 2022.

The post RBI guidelines issued ! New rules for debit and credit cards will be applicable after 6 days, check Details first appeared on Rightsofemployees.com.

Due to which there will be a reduction in fraud on credit and debit cards. How does the token system work? How will your card data be safe with this, read in this article.

Know about the token system

The token system converts all debit and credit card data into ‘tokens’. By which the information of your card is kept hidden in the device. RBI has said that any person can convert the card into token by requesting the token bank.

There is no charge to the cardholder for tokenizing the card. If you convert your card into a token, then your card information will be saved in the token on any shopping website or e-commerce website.

Debit and credit cards will be safe

By converting to token you will be able to use the card easily. This system will also keep your card safe from online fraudsters. RBI has made this rule for the safety of the customers. Card information such as number, CVV and expiry date are maintained in the merchant’s database for ease of making payments. Due to which there remains a security risk associated with this data.

According to the RBI, the information about the debit or credit card cannot be kept by anyone other than the card issuer or the network. If they already have data saved then it will be necessary to delete it.

Generate token like this

1. Go to any e-commerce website or application. Start a payment transaction after making a purchase there.
2. Select your card. Enter your debit or credit card information and any additional information requested at the time of making the payment.
3. Secure your card. Tokenize your card as per RBI guidelines or select the option “Secure your card as per RBI guidelines”.
4. Authorize the creation of the token. To complete the transaction, enter the OTP that your bank has sent to your mobile phone or email.
5. Create a token. Your card data is then replaced with a token.

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