Now payment gateway will be able to store your card details till January 2023, know what is the whole matter
The Reserve Bank of India (RBI) has announced a relaxation in norms for storing card-on-file (CoF) data related to guest transactions. RBI has taken this decision a month after extending the card token deadline by three months.
Now apart from the card issuer and the card network, the merchant or its payment aggregator involved in the settlement of the transaction can store the data for a maximum period of 4 days from the date of the transaction or the settlement date, whichever is earlier. Additionally, the central bank has extended the permission for banks to store data for the final settlement of post-transactional activities till January 31, 2023. RBI has said that an acquirer or bank shall be deemed to be the one who deposits the money and gives a receipt for the same.
RBI has not made any change in maintaining the deadline of 1st October for the card tokens issued earlier. The bank said that all entities, except the card issuer and the card network, will have to delete the card data stored before October 1, 2022. On June 24, RBI extended the deadline for storing card data and introducing the token system by three more months to September 30. While the initial deadline was January 1, 2022. The Reserve Bank, while announcing its decision to extend the deadline, had said that after reviewing the issues involved and detailed discussions with all stakeholders, it has been observed that there has been considerable progress in the token issue. The process of transactions based on these tokens has also started.
Also, where cardholders manually enter card details during transactions, the same has not been implemented as of now. This means that payment aggregators, payment gateways, and merchants can store customer card credentials in their databases only till September 30. Although its time limit has been extended several times, this time it is finding it difficult to relax the deadline in view of the stand of the RBI.