RBI Enables Card-on-File Tokenisation Directly Through Card Issuing Banks/Institutions
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- Last Updated on 22 December, 2023
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Circular No. RBI/2023-24/91 CO.DPSS.POLC.No.S-919/02-14-003/2023-24, Dated 20.12.2023
As announced in the Statement on Development and Regulatory Policies dated October 6, 2023, the RBI has decided to enable Card-on-File Tokenisation directly through card issuing banks/institutions also. This will provide cardholders with an additional choice to tokenise their cards for multiple merchant sites through a single process. Further, the Generation of CoF Tokens for a card, through the card issuer, can be enabled through mobile banking and internet banking channels.
Further, the CoFT generation shall be done only on explicit customer consent, and with AFA validation. If the cardholder selects multiple merchants for which to tokenise his/her card, AFA validation may be combined for all these merchants. The tokens thus generated shall be made available on the merchant’s payment page, in the cardholder’s account with the merchant.
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