From 2022, online transactions using debit and credit cards are likely to become cumbersome, if the Reserve Bank of India (RBI) has its way.
As of now, cardholders need to remember only the card verification value (CVV) number to execute credit and debit card transactions on e-commerce platforms such as Amazon and Flipkart. This is because once a card user enters card details—the 16 digit card number and the expiry date, the same is stored by the e-commerce websites that make future transactions easier.
However, the RBI is now planning to make it mandatory for card users to enter their card details every time they make an online transaction. The new regulations are likely to come into effect from January 2022. The new regulations essentially mean that every time a user purchases something on e-commerce sites, they will have to enter all the required details again.
While it may become a tedious process for people having multiple cards, the RBI aims to improve the financial safety of customers by preventing payment aggregators such as Google Pay and PayTM, and e-commerce websites such as Amazon and Flipkart from storing their card information on their servers and databases.
Data localisation credit cards
Like many other countries, the RBI too has strengthened its norms on data localisation and wants storage of payments system data only in India. In a supervisory action, the Reserve Bank of India (RBI) in July restricted Mastercard from onboarding any new domestic customers onto its card network from July 22. The action has been taken against the global payments and technology company for its failure to comply with the central bank’s directions on the storage of payment system data.
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