Card-on-file tokenisation facility at issuer bank-level

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.

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

The central bank had introduced CoFT in September 2021 and began its implementation from October 1, 2022.