CURRENT AFFAIRS

Detailed explanation-1: -"RBI’s mandate for card-on-file tokenisation is a mark of enhanced focus on building a robust, tech-enabled financial ecosystem to benefit consumers and merchants alike through more secure transactions and better transaction approval rates,” Sharma told CNBC-TV18.com.

Detailed explanation-2: -Tokenization of your debit and credit card is a process by which a financial institution creates a unique digital identifier for your debit or credit cards instead of showing the card number on your online transactions. This is done to protect cardholders from online fraud.

Detailed explanation-3: -The central bank also directed payment assemblage, and online dealers to not enjoy any sensitive data of card owners. As per the issued norms, consumers are obliged to create specific codes or substitute tokens instead of exposing real card information. This policy comes into process on 1st October 2022.

Detailed explanation-4: -Tokenisation refers to a process of replacing actual card details with the unique set of characters referred to as ‘token’ when the transaction is under process.