Mumbai: The Reserve Bank of India (RBI) on Wednesday included laptops, desktops, hand watches and Internet of Things (IOT) based products, etc.
The purpose of tokenization is to further strengthen the security of the payment system. Under this arrangement, instead of the actual card details, unique alternate code details are generated, which are called tokens. This card is a token matching the token requester and the identified devices.
Earlier, RBI allowed token arrangement on the cardholder’s mobile phone and tablet. Under this, an alternate code is generated for the transaction.
RBI said in a statement, “In view of the review of the system and the suggestions received from various stakeholders, the scope of the token arrangement is to include consumer devices laptops, desktops, hand watches, bands, and Internet of Things (IoT) based products, etc. The decision has been made.”
With this initiative, transactions through cards will be more secure for the users. It is noteworthy that RBI had issued guidelines on the token systems for card transactions in 2019. It allowed authorized card networks to provide token services on request. It is subject to certain conditions. Prior to this circular, this facility was available only for mobile phones and tablets.
