New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    Consider the following about the RBI circular on

    card-on-file (CoF) tokenisation? I. CoF refers to card information stored by payment gateway and merchants to process future transactions. II. It mandated the adoption of card-on-file (CoF) tokenisation as an alternative to card storage. III. It applies to International and online purchases. Which of the above statement is/are not correct.
    A I only Correct Answer Incorrect Answer
    B II only Correct Answer Incorrect Answer
    C III only Correct Answer Incorrect Answer
    D I and III Both Correct Answer Incorrect Answer
    E II and III Both Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) is extending the deadline for card-on-file (CoF) tokenisation by another three months to September 30 as transaction processing based on such tokens is yet to gain traction across categories of merchants. It was mandated that no entity in the card transaction or in the payment chain, other than the card issuers and / or card networks, can store the CoF data, and any such data stored previously be purged. It mandated the adoption of card-on-file (CoF) tokenisation as an alternative to card storage. It applies to domestic, online purchases. CoF refers to card information stored by payment gateway and merchants to process future transactions. Card-on-file, or CoF, refers to card information stored by payment gateway and merchants to process future transactions. Tokenisation is the process of replacing actual card details with a unique alternate code called 'Token' - thereby enabling more secure transactions.

    Practice Next