The Reserve Bank of India (RBI) on Friday said that it will not extend the October 1 deadline to implement the card tokenisation deadline, as it has received feedback from the market participants that the system is ready, T Rabi Shankar, deputy governor of the RBI, said, adding that in September itself, 40% of the transactions were done using the tokens.
“We don’t believe we should hold back efforts to ensure customer protection, because of such laggards. Eventually, they might take a little bit of more time but they will come on to the framework soon enough,” he said, pointing out to some merchants who have not adapted to the new system.
The central bank has received feedback from the players that the system is ready, Shankar said, adding that there are a few participants who might not be ready, but this is probably due to their unwillingness to comply. Overall, around 350 million tokens have already been created and the total value of the transactions done using tokens has been Rs 63 crore so far.
Since the RBI issued the regulations in 2020, the central bank was constantly talking to stakeholders to ensure transition takes place smoothly, Shankar said.
“Wherever required, we have given extensions, and you know we have given many extensions so that the system is comfortable switching over,” he said.
The deadline to move tokenisation was moved three times since the norms were first introduced in March 2020. The system includes issuing tokens at merchant platforms, instead of storing customer card data, to ensure data protection in case of breach of privacy. The merchants are also required to purge existing card data from their servers.