Restriction on storage of actual card data- Card-on-File (CoF) – RBI extends the deadline to June 30, 2022

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Restriction on storage of actual card data-  Card-on-File (CoF) – RBI extends the deadline to June 30, 2022



            Reserve Bank of India vide Circular No : - RBI/2021-2022/142 CO.DPSS.POLC.No.S-1211/02-14-003/2021-22 dt.December 23, 2021, addressed to - All Payment System Providers and Payment System Participants, informed that the timeline for storing of CoF data is extended by six months, i.e., till June 30, 2022; post this

Post June 30, 2022. such data has to be purged;

This time extension, was done basis the representation received from various stake holders.

In the same circular, Reserve Bank of India has advised:

in addition to tokenisation, 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 storage of CoF data by entities other than card issuers and card networks

In simple terms, post June 30,2022 CoF data can only be stored by Card Issuers and Card Networks.

All other participants in the whole eco-system have to finalise alternate mechanisms in lieu of the Card Numbers.

Reference RBI Circulars:

Circular DPSS.CO. PD. No.1810/02.14.008/2019-20 dated March 17, 2020 on “Guidelines on Regulation of Payment Aggregators and Payment Gateways”,

Circular CO. DPSS.POLC.No. S33/02-14-008/2020-2021 dated March 31, 2021

Circular CO. DPSS.POLC.No. S-516/02-14-003/2021-22 dated September 07, 2021 on “Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services”.

 

Additional Reading:

01) https://www.livemint.com/industry/banking/industry-bodies-urge-rbi-to-extend-card-on-file-tokenization-deadline-11640153645176.html

02) Indian Banks Association writes to RBI, seeks extension for tokenisation deadline @ https://www.moneycontrol.com/news/business/companies/iba-banks-knock-rbis-door-seek-extension-for-tokenisation-deadline-7848411.html

 

 

Q: What is Indian Banks Association?

Ans: Vision - To work proactively for the growth of a healthy, Professional and forward looking, banking and financial services industry, in a manner consistent with public good.

Q: What is Alliance of Digital India Foundation?

Ans: Quote: -

Founded in 2020, ADIF (Alliance of Digital India Foundation) is a think tank for India’s digital startups formed to fully capitalise on the sector’s promise with the objective of its long-term prosperity in mind.

Unquote: -

Q: What is The Merchant Payments Alliance of India (MPAI) ?

Ans: Quote: -

The Merchant Payments Alliance of India (MPAI) is a group of like-minded merchants accepting digital payments in an ever-growing digital market

Unquote: -

 

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing more-Nothing less

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