Card-on-File Tokenisation : Reserve Bank Of India
The Reserve Bank of India (RBI) proposed to introduce Card-on-File Tokenisation (CoFT).
- Card-on-File transaction is where in cardholders authorizes merchants to store their payment information securely and bill cardholders’ stored accounts for future purchases.
- Tokenisation refers to replacement of actual credit and debit card details with an alternate code called the “token”, which will be unique for a combination of card, token requestor and device.
- This shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and the merchant (token requestor and merchant may or may not be the same entity).