Facts for Prelims (FFP)
Source: TOI
Context: The Reserve Bank of India (RBI) governor, has proposed the introduction of card-on-file tokenisation (CoFT) at the issuer-bank level.
- This move aims to enhance data security and provide customers with more control over managing their card tokens.
Need:
- Under the current system, cardholders have to create different tokens for each merchant, which can be time-consuming and pose data security concerns.
- With CoFT, tokens will be created at the issuer bank-level and linked to the user’s existing accounts with various e-commerce applications. This eliminates the need for duplicate tokenization processes at each app or website, enhances transaction security, and reduces card-data-related fraud.
About Tokenisation:
Tokenisation replaces a card’s 16-digit number with a unique token, specific to a user’s card and one merchant at a time. These tokens hide the card’s actual details, improving security, especially in case of data leaks from merchant websites. Users can choose to let their cards be tokenised for future online purchases
