RBI introduces Card-on-File Tokenisation creation facilities directly at the issuer bank level
Since its launch in January 2021, the Payments Infrastructure Development Fund (PIDF) Scheme has significantly expanded the nation’s payment network, adding more than 2.66 crore new payment touchpoints across the country. In an effort to bolster the promotion of digital payments at the grassroots level, the scheme will now be extended for an additional two years, through December 31, 2025.
RBI Governor Shaktikanta Das, in the announcement following the Monetary Policy Committee’s decision on Friday, revealed that the PIDF scheme’s coverage will also undergo expansion. This expansion includes the incorporation of beneficiaries from the PM Vishwakarma Scheme and the deployment of emerging payment acceptance methods, such as soundbox and Aadhaar-enabled biometric payment acceptance devices. These strategic measures are aimed at further accelerating the Reserve Bank’s efforts to facilitate digital payments adoption across the nation.
“These measures will further accelerate the Reserve Bank’s efforts to promote digital payments at the grass root level,” Das added.
New Channels for Card-on-File Tokenisation
Given the growing acceptance and benefits of tokenisation of card data, it is now proposed to introduce Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank level. Das explained: “This measure will enhance convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications.”
Master Direction on IO Mechanism in REs
At present, the Internal Ombudsman (IO) framework in regulated entities comprises of separate guidelines for select Scheduled Commercial Banks (SCBs), Non-Bank issuers of Prepaid Payment Instruments (PPIs), NBFCs; and all Credit Information Companies (CICs). These guidelines have similar design features but vary in certain operational aspects. Das revealed: “It has been decided to effect certain changes and also consolidate and harmonise the IO guidelines into a single master direction. This will further strengthen the customer grievance redress system of the regulated entities.”
