TOKENISATION SERVICE

About:

• What is it?
  • Tokenisation involves a process in which a unique token masks sensitive card detail.
    
    
  • The token is then used to perform card transactions in contact-less mode at Point of Sale (POS) terminals, Quick Response (QR) code payments, etc.
    
    
  
  
  
• Indian Scenario:
  • The RBI has allowed card payment networks to offer card tokenisation services to any token requestor, that is, a third-party app provider.
    
    
  • A card holder can avail of these services by registering the card on the token requestor’s app and after giving ‘explicit consent’.
    
    
  • However, RBI has made it clear that no charges should be recovered from the customer for availing this service.