The RBI is also mulling introducing Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank-level, given the growing acceptance and benefits of tokenisation of card data, Governor Shaktikanta Das Das said on Friday while announcing the outcome of the policy meeting.
“It is now proposed to introduce CoF token creation facilities directly at the issuer bank level. This measure will enhance convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications. Instructions in this regard will be issued separately,” Shaktikanta Das said.
At present, a Card-on-File(CoF) token can only be created through the merchant’s application or webpage
RBI introduced Card-on-File Tokenisation (CoFT) in September 2021 and began implementation on October 1, 2022. “So far, over 56 crore tokens have been created on which transactions with a value of over ₹5 lakh crore have been undertaken,” read the Statement on Developmental and Regulatory Policies, issued on October 6.
Under tokenisation services, a unique alternate code is generated to facilitate transactions through cards. It is the process of substituting a 16-digit customer card number with a non-sensitive equivalent value, referred to as a token. This essentially means that a customer's card information will no longer be available on any Merchant, Payment Gateway, or 3rd party that helps in the processing of digital transactions today.
RBI also announced the extension of the Payments Infrastructure Development Fund (PIDF) scheme by two years and the inclusion of PM Vishwakarma Scheme beneficiaries.
“It is now proposed to extend the PIDF Scheme by a further period of two years, i.e., up to December 31, 2025. Also, it is proposed to include beneficiaries of the PM Vishwakarma Scheme in all centres under the PIDF Scheme. This decision to expand the targeted beneficiaries under the PIDF scheme will provide a fillip to the Reserve Bank’s efforts towards promoting digital transactions at the grassroots level,” Governor Shaktikanta Das said.
“The announcement by the Reserve Bank of India to extend the Payments Infrastructure Development Fund (PIDF) scheme tenure by another two years is a welcome move. It shows the commitment and focus of the regulator to increase the reach and penetration of digital payments further. We look forward to working extensively on our part as a leading payments player to accelerate the deployment of digital payment acceptance modes in the targeted geographies," said Ramesh Narasimhan, CEO, of Worldline India.
The central bank has announced doubling the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks to ₹4 lakh.
