Everyone knows that cyber attacks have taken place on many digital service sites in India from 2020 to 2024, and the most important reason for such cyber attacks is the customer data available on the website.
The Reserve Bank of India (RBI) is expected to issue an important directive on January 1 to address the problem.
Reserve Bank
The Reserve Bank of India (RBI) has ordered that no company or payment site other than the debit and credit card issuing body and the card network be allowed to store debit and credit card data anymore.
Credit or debit card
The Reserve Bank of India has also directed payment and digital service providers to delete previously stored credit or debit card data.
Digital token
In addition, cardholders will be given a digital token for making payments by debit and credit card, which will allow them to make payments.
Action to prevent fraud
The announcement comes with the sole aim of preventing debit and credit card fraud, the most important reason for issuing this new regulation and order. With the change coming from January 1, the dominance of card transfer is also likely to decrease.
MasterCard and Visa
With MasterCard and Visa already facing significant trade vulnerabilities in India, the new order will create additional trade vulnerabilities.
SBI Card, BDM, Bonpe
HSBC India, SBI Card, BDM, Pohnpei, NPCI and other systems are already gearing up for the new transition and token system.
What is a token system?
If you want to transfer money by debit or credit card, a 16-digit token number will be sent to the mobile number to which the card is attached, without having to use the card number directly.
This allows you to securely transfer money in public without using your debit or credit card number.
16 digit token
Also this token adoption is for use only by cardholders and vendors requesting tokens. Thus this token cannot be used anywhere else. It also provides extra security.
Token Requestor
These tokens must be obtained through the Token Requestor, and this technology will be developed by the adoption payment platform and systems. For example, in the Uber car booking service, select the option to pay with the card saved after the trip, click on “Agree and Continue” and the OTP will come and complete the payment.
Debate on cryptocurrency .. Is it the key decision at the RBI meeting?
Debates over cryptocurrency have intensified in recent times. While there is growing interest in this, there are many different views.
There is a growing interest in cryptocurrency, especially among Indian investors. It is in this context that the Government of India is expected to file a bill to regulate cryptocurrency.
Meanwhile, reports have surfaced that the central bank is discussing digital currency and private cryptocurrencies.
The cryptocurrency bill?
The government has come forward to bring in legislation on cryptocurrencies. This is currently being considered in the winter session of Parliament. Cryptocurrency and the official digital currency bill 2024 are expected to be filed. However, reports have suggested that this may not be the case in the next session of parliament.
Reserve Bank Meeting
The 592nd meeting of the Reserve Bank was held in Lucknow under the chairmanship of RBI Cover Shaktikant Das. During the meeting, the RBI panel discussed various aspects related to digital currency and private cryptocurrency.
Amendment to the law
In October 2024, the Government received a proposal from the Reserve Bank of India to amend the Reserve Bank of India Act, 1934 to digitize currency.
