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Reserve Bank of India: Update on storing Card-on-File data for guest checkouts and other post-transaction activities
Reserve Bank of India: Update on storing Card-on-File data for guest checkouts and other post-transaction activities

July 29, 2022

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The Reserve Bank of India (RBI), after stakeholder consultation, has released a clarification on storing card-on-file (CoF) data for guest check-out transactions and other post-transaction activities. However, the timeline to purge CoF data, except for card issuers and networks, remains the same.

In its clarification, to ease transition to card-on-file tokenisation, the RBI has suggested that as an interim measure for guest checkouts, the merchant or its Payment Aggregator (PA) involved in settlement of such transactions, can safe CoF data for 4 more days in addition to the transaction data or till the settlement date, whichever is earlier. Post the settlement of such transactions, the data has to be purged.

For other post-transaction activities, the RBI has allowed acquiring banks to store CoF data till January 31, 2023.

Backdrop

The RBI after reviewing the tokenisation framework, on September 7th, 2021 issued a directive with certain enhancements to its  extant framework on card tokenisation services. Prior to this on August 25th, the RBI had extended the scope of permitted devices for card tokenisation transactions to all consumer devices enabling compliance for the industry with the Guidelines on Regulation of Payment Aggregators and Payment Gateways (PA/PG Guidelines).

The deadline to purge stored card data details, in compliance with the PA/PG Guidelines, was initially June 30th, 2022. This has been extended by the RBI to September 30th, 2022. However, due to the absence of solutions for non-token based transactions such as guest checkouts, the RBI has released a clarification stating interim measures.

You can read more about it here, here and here.

For more information, kindly write to apurva@nasscom.in.

 


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Apurva Singh
Senior Policy Associate

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