RBI issues two circulars: Transition to CoF, payment aggregator norms to be eased

Corporate Laws

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Jul 29, 2022

The Reserve Bank of India (RBI) on Thursday released guidelines to ease the transition to new norms on card-on-file (CoF) tokenisation and licensing of payment aggregators (PAs) in two separate notifications.

While reiterating that with effect from October 1, no entity in the card transaction chain, other than card issuers and card networks, shall store CoF data, the central bank notified two interim measures. Other than the card issuer and the card network, the merchant or its PA involved in settlement can save the CoF data for a maximum period of four days after the transaction date or till the settlement date, whichever is earlier. This data shall be used only for settlement of such transactions, and must be purged thereafter, the RBI said.

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