Online debit & credit card rules to change on Jan 1 2022

Online payment has become the new normal now. People prefer making online payments rather than keeping cash with them. May it be ordering food, shopping or booking cabs, public make online transactions and keep their passwords and debit & credit cards details saved for the same.

However, along with online banking, the rate of online fraud has increased drastically. Therefore, in order to make online payments more security, the RBI has asked all the merchants and payment gateways to remove sensitive client details on debit & credit cards that it saved on their end.

The new debit and credit card rules comes into effect from Jan 1, 2022 and RBI has also asked merchants and payment gateways to use encrypted tokens to carry transactions. Banks have also started informing their clients about the same. HDFC Bank has informed its clients via SMS that details saved on Merchant website/app will get deleted by merchants as per the RBI mandate for enhanced card security with effect from Jan 1, 2022. It also added that to pay each & every time, enter full card details or opt for tokenization.

As per the new rules, from January 2022, when you will make the first payment to any merchant, you will need to give them your permission with an additional factor of authentication. Once you do so you will complete the payment by keying in your card’s CVV and OTP.