As online frauds are increasing day-by-day, RBI has come up with new “Token” System to eradicate misuse of cards even to some extent.
Up To Now, customers have to enter their Card Number, CVV, Name on the Card details to process online transactions. Even they have to save them on e-commerce sites like Amazon, Flipkart to do transactions further.
This gives scope to increase of online frauds day-by-day. So to keep check with the system, RBI is thinking over to bring “Token System” in place of entering card details.
What is “Token System” and how is it useful?
To protect users personal information from cyber threats, RBI is planning to introduce “Token System”.
- This system sends authorisation to the network card providers(Visa, Maestro,Master Card)to confirm your card details and allot a unique “Token Number” which were linked to the customer devices which can be applied at the time of check-out of the transaction.
- With this, customers can access their transactions within few seconds/minutes as there is no need to share the users data repeatedly.
- With this “Token Number” customers can access transactions on any platform
- There is no need to share CVV, Card Number every time
- Card Companies will hold responsible for issuing Token Number while dealing with e-commerce sites
This is just a proposal from RBI and after analysing its pros and cons it will be implemented further! If it would be implemented we can expect this system to be updated with effect from January 2022.
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