Reserve Bank of India (RBI) advises users to remember your card details along with expiry date and CVV. This will prevent your card data or details from being stored on the servers or databases of online merchants, e-commerce websites and payment aggregators.
Remembering your 16 digit debit card or credit card number is a difficult task. Especially for those who use more than one card. But Reserve Bank of India (RBI) advises users to remember your card details along with expiry date and CVV. This will prevent your card data or details from being collected on the servers or databases of online merchants, e-commerce websites and payment aggregators. According to a report, the Reserve Bank of India (RBI) is going to make changes in the guide line of data storage.
According to media reports, RBI has rejected the proposal given by payment gateway companies regarding the new rule and this rule may come into force from January 2022. Following the change in rules, payment aggregators, e-commerce websites and online merchants such as Amazon, Flipkart, Google Pay, Paytm and Netflix will also be barred from collecting customer card information on their servers or databases. This will be done because, the bank acts as an important liaison between the customer and the aggregators.
This means that instead of just entering their CVV to make the payment, customers will now have to enter full card details such as name, 16 digit card number and expiry date. Certainly after this change it will take longer to make the payment. But the change was aimed at securing card information and ensuring that payment operators are not collecting data on the system. RBI has argued that the purpose of not allowing third parties to store card details is to reduce the additional risk of fraud and financial theft.
Earlier in February, a group of 25 consumer internet companies such as Flipkart, Amazon, Netflix, Microsoft and Zomato had also argued with the RBI, that these rules would severely hamper the online payment experience of the customer. In addition, it will also affect the fraud risk assessment.
If the Reserve Bank of India (RBI) revises the guidelines from January 2022, customers with a debit card or credit card will have to enter their 16-digit card number every time they make a transaction. Platform whether you are doing this on merchant website or e-commerce platform. This can also add to the problems of customers with more than one card but this is being done only for their banking security and data security.