The RBI will introduce the facility for creation of card-on-file tokenisation at the issuer bank level to enhance convenience for cardholders in getting tokens created and linking them to their existing accounts with e-commerce applications.

“Given the growing acceptance and benefits of tokenisation of card data, it is now proposed to introduce Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank level,” Governor Shaktikanta Das said.

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Currently, Card-on-File (CoF) tokens can only be created through merchant applications or on the webpage of the e-commerce website.

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The central bank had introduced Card-on-File Tokenisation (CoFT) in September 2021 and began implementation from October 1, 2022.

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Tokenisation has improved the transaction security and approval rate, RBI said, adding that over 56 crore tokens have been created, on which transactions valued at over Rs 5 lakh crore have been undertaken.

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“The proposal to introduce card-on-file tokenization directly at the bank level is a game-changer for both cardholders and the financial industry as a whole. It enhances convenience and security, reducing the friction associated with digital transactions. This forward-looking initiative reflects the RBI’s commitment to fostering a robust and secure payments landscape in India,” said Rajsri Rengan, India Head of Development, Banking and Payments, at FIS.

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