RBI Has Changed Online Payment Rules- Effective From New Year

Reserve Bank of India has Announced Changing the Guidelines for Merchants and Gateways. The Revised Online Payment Rules Will Be in Effect from January 1. Read This Post To Know Everything About Newly Amended Rules. 

With a bounce in digital payments in India, the chances of fraud have also increased. Online transactions are always prone to cyber-attacks, and it is becoming unsafe for users to make online payments. The Reserve Bank of India (RBI) has asked all merchants and gateways to remove sensitive data like debit or credit card details from the portal to provide better security to the customers and make online payments safe. 

Revised rule (mentioned below) will be applied from January 1. 

  • The merchants and payment gateways must delete all user details stored on their servers, and that means users have to enter full details of their debit or credit cards every time they make payments. 
  • RBI also asked the merchants to provide alternative codes to the card details, including 16-digit card number, expiry date, and CVV. The replacement of the actual card number with an alternative code is known as Tokenisation. Such card transaction is safer as the card details are not shared with the merchants during online transaction processing. 
  • In addition to this, the token requestor can not store card details, Primary Account Number (PAN) or any other card details. Card networks must get the token requestor certified for safety and security as per the revised rules. Moreover, the customers need not pay any charges for these services.   
  • These rules will be implemented from January 1. When you make payment to any merchant, they will need to provide customers with the Additional Factors of Authentication (AFA). Customers can complete their payments by keying in CVV and OTP. 

Banks like HDFC have already started informing their customers through messages about the changes that come into effect from January 1.