Tokenisation: Benefits, registration, charges and other details; Here is what RBI says
Tokenisation has been allowed through mobile phones and / or tablets for all use cases / channels (e.g., contactless card transactions, payments through QR codes, apps etc.)
One can perform financial transaction via various modes like cash, cards, digital modes, among others. Now the use of token is also gaining pace.
According to the Reserve Bank of India (RBI), tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device.
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https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043.6. Who are involved in a tokenisation transaction: Normally, in a tokenised card transaction, parties / stakeholders involved are merchant, the merchant’s acquirer, card payment network, token requestor, issuer and customer. However, an entity, other than those indicated, may also participate in the transaction.
7. Limit on the number of cards that a customer can request for tokenisation: A customer can request for tokenisation of any number of cards. For performing a transaction, the customer shall be free to use any of the cards registered with the token requestor app.
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