HomeLatest News & UpdatesTokenization system to prevent bank fraud effective from 1st October IV news
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Tokenization system to prevent bank fraud effective from 1st October IV news

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After tokenization, there is no need to insert the credit or debit card in the ATM every time

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(from representative) Ahmedabad, Thursday

The Reserve Bank’s decision to introduce a tokenization system to prevent fraud in online banking will be implemented from October 1. If the Reserve Bank does not make any changes at the last minute, it will be implemented from October 1, informed sources of the Reserve Bank say. As the Reserve Bank has also organized a special meeting to discuss the payment system on October 3, it is believed that a specific explanation will be given regarding the new system. With the help of this system, sensitive information about credit and debit cards can also be kept secret. It is also likely to protect against cyber attacks.

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In the system of tokenization, credit card or debit card information does not have to be given to merchants. In it, when payment is made by card, payment can be made without showing the credit card or debit card using a unique ID number. A unique token number will be exchanged depending on the credit card or debit card details. As this number is also encrypted, it is being planned with the possibility of not being misused. It is likely to reduce cyber fraud and online fraud.

You may be wondering why to tokenize your credit or debit card. This process is simple. You will need to provide your card details when you shop online and reach the payment page of the merchant’s website. You have to go there and select the Secured Card option. After entering the card details you will be asked to select this option. You have to provide OTP to tokenize your card details. Doing so will tokenize your card. Currently, there will be no cost to tokenize your credit or debit card. It may change in future.

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If tokenization is resorted to, no one will be able to know your credit or debit card details. Thus a new layer of security can be created in online transactions. After tokenization, if you have to do any transaction in the ATM of the bank, you will not have to insert your card in the ATM to do that transaction.

Tokenization is currently not mandatory, but the possibility that tokenization may become mandatory to make your financial online transactions more secure over time cannot be ruled out. At present the cardholder can decide whether to tokenize their card or not. If you don’t want to tokenize the card and don’t tokenize it, you have to insert your credit or debit card into the ATM every time you go to the ATM to do financial transactions. Since tokenization is beneficial, there is a strong possibility that people will switch to tokenization from October 1st.

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