HDFC Bank has started alerting its customers to the new RBI guidelines which will come into effect on January 1, 2022. The bank says that from January 1, 2022, customers’ HDFC Bank card details, both credit and debit, will be removed from the merchant platform. “Effective 1 January 22… Your HDFC bank card details stored on the merchant’s website/app will be deleted by merchants in accordance with the RBI mandate for enhanced card security,” the bank said in a statement. . Also Read – RBI Creates FinTech Department to Promote Innovation and Create Policy in FinTech Sector
Under amended RBI guidelines, no merchant or entity will be able to store customers’ card details from 1 January 2022. Only banks and network providers, i.e. companies such as Visa, Mastercard and RuPay will be able to store customers’ full card details. Also Read – RBI Introduces New Digital Payment Method That Doesn’t Need Internet: Check Details
“As of January 1, 2022, no entity in the card transaction/payment chain, other than card issuers and/or card networks, will store actual card data. All of this previously stored data will be purged,” RBI said at the time. “For transaction tracking and/or reconciliation purposes, entities may store limited data – the last four digits of the actual card number and the name of the card issuer – in accordance with applicable standards,” it added. the apex bank. Also Read – RBI Wants Complete Ban on Cryptocurrencies: No More Bitcoin Billionaires in India?
What will change?
With the new RBI guidelines coming into effect on January 1, 2022, customers will see their recurring payments declined. For example, if you had subscribed to an Apple Music or Amazon Prime monthly subscription, it will be declined from January 1, 2022. In addition to this, your card details are stored on various platforms such as Swiggy, Amazon, Myntra, BigBasket, etc. will be cleaned. However, recurring payments from a bank’s own platform will not be affected by this change.
What is the alternative?
From January 1, 2022, customers will need to complete an online transaction by providing the generated OTP after adding complete card details including card number, expiration date and CVV number. They will have to repeat this process each time they make an online transaction.
Alternatively, they will be able to use token cards to make online payments. This will save them having to enter card details over and over again. These tokens, which replace the actual or plain card number with an alternate code that will be unique for each card. Token cards will be issued by banks or authorized card networks and they will secure online banking transactions.