HDFC Bank has started alerting its customers about the new RBI guidelines that will come into effect on January 1, 2022. The bank says that starting January 1, 2022, customers’ HDFC Bank card details, both credit and debit cards, will get deleted from the merchants’ platform. “Effective 1st Jan’22…Your HDFC Bank card details saved on Merchant Website/App will get deleted by the merchants as per the RBI mandate for enhanced card security,” the bank said in a statement. Also Read - RBI sets up FinTech Department to promote innovation, create policies in fintech sector
As per the changed RBI guidelines, no merchant or entity will be able to store customers’ card details starting January 1, 2022. Only the banks and network providers, that is, companies such as Visa, Mastercard and RuPay, will be able to store customers’ complete card details. Also Read - RBI introduces new digital payment method that doesn’t need internet: Check details
“With effect from January 1, 2022, no entity in the card transaction / payment chain, other than the card issuers and / or card networks, shall store the actual card data. Any such data stored previously shall be purged,” RBI had said at the time. “For transaction tracking and / or reconciliation purposes, entities can store limited data – last four digits of actual card number and card issuer’s name – in compliance with the applicable standards,” the apex bank had added. Also Read - RBI reportedly wants a complete ban on cryptocurrencies: No more Bitcoin billionaires in India?
What will change?
With RBI’s new guidelines coming into effect on January 1, 2022, customers will see their recurring payments being declined. For instance, if you had subscribed to a monthly Apple Music or Amazon Prime subscription plan, it will be declined starting January 1, 2022. In addition to that, your card details saved on various platforms such as Swiggy, Amazon, Myntra, BigBasket etc will be wiped clean. However, recurring payments from a bank’s own platform will not be affected by this change.
What is the alternative?
Starting January 1, 2022, customers will have to perform a transaction online by providing the OTP that is generated after adding complete card details, including card number, expiry date and CVV number. They will have to repeat this process every time they make a transaction online.
Alternatively, they will be able to use tokenised cards for making payments online. This will save them from entering the card details over and over again. These tokens, that are replacement of actual or clear card number with an alternate code that will be unique to every card. Tokenised card will be issued by bank or authorised card networks and they will make online banking transactions safe.