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Tokenisation to interest rates: All about RBI's new credit card rules

OTP-based consent requirement for delayed activation will safeguard users against false applications, unwanted cards

Photo: Shutterstock
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Photo: Shutterstock

Bindisha Sarang Mumbai
The Reserve Bank of India’s (RBI) new rules for credit and debit cards came into effect from October 1. These include tokenisation, one-time password (OTP) for activation after 30 days, written permission for enhancement of credit limit, and greater clarity on interest calculation.

Tokenisation for greater security

Tokenisation means replacing actual card details (such as the 16-digit card number, expiry date, etc) in digital transactions with an alternative code called the token. Merchant sites store customers’ card data so that the latter don’t have to input these details every time they transact. But this comes with the risk of merchants’ sites being

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First Published: Sep 30 2022 | 7:20 PM IST

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