At the request of industry stakeholders, the Reserve Bank of India extended the card-on-file (CoF) tokenisation deadline by six months to June 30. The earlier deadline was December 31.
“In light of various representations received in this regard, the timeline for the storage of CoF data is extended till June 30, 2022. Post this, such data shall be purged. In addition to tokenization, industry stakeholders may devise alternate mechanism(s) to handle any use case (including recurring e-mandates, EMI option) or post transaction activity (including chargeback handling, dispute resolution, reward/loyalty program) that currently involves it requires the storage of CoF data by entities other than card issuers and card networks,” RBI stated in a circular.
Earlier, several digital payment firms and banks had voiced their concerns over industry readiness for the RBI directive on CoF and had written to the central bank requesting an extension of the deadline for implementation of card data storage norms.