By BW CFO World Online Bureau
RBI expands the horizon of Tokenisation to include consumer devices and Internet of things (IoT) Devices as tokenisation is a safer method.
The Reserve Bank of India has decided to extend the scope of tokenisation to include consumer devices – laptops, desktops, wearables (wristwatches and bands) and Internet of Things (IoT) devices.
Earlier on the facility was only available for mobile phone users.
“On a review of the framework and keeping in view stakeholder feedback, it has been decided to extend the scope of tokenisation to include consumer devices – laptops, desktops, wearables (wristwatches and bands) and Internet of Things (IoT) devices. All other provisions of the circular will continue to be applicable,” the Reserve Bank said,” the Reserve Bank said.
Tokenisation refers to a substitution of actual card details with an alternate code called the “token”, which will be unique for a combination of card, token requestor (the entity which accepts the request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device. A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing.
(ENS Economic Bureau)