Explained: How tokenisation is enabled, its impact on card transactions

The Reserve Bank of India (RBI) has permitted authorised card payment networks to offer card tokenisation services to consumers requesting it, in an effort to improve safety and security of card transactions. Nikhat Hetavkar explains the whole idea of tokenisation, how it is enabled, its impact on card transactions and related security guidelines.
 
What are the basic tenets of tokenisation?
 
Tokenisation acts as an additional layer of security as it masks sensitive card data such as the 16-digit account number, expiry date and security code. It creates a set of numbers called ‘token’, which is used to substitute