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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

Card-on-File Tokenisation (CoFT) - Enabling Tokenisation through Card Issuing Banks

20-Dec-2023 | RBI/2023-24/91 CO.DPSS.POLC.No.S-919/02-14-003/2023-24

RBI has issued a circular Enabling Tokenisation through Card Issuing Banks and Detailed requirements for the same.

By virtue of this circular it has been decided to enable Card-on-File Tokenisation (CoFT) directly through card issuing banks / institutions also. This will provide cardholders with an additional choice to tokenise their cards for multiple merchant sites through a single process.

Requirements for CoFT through card issuers:-

1.Generation of CoF Tokens for a card, through the card issuer, can be enabled through mobile banking and internet banking channels.

2. CoFT generation shall be done only on explicit customer consent, and with Additional Factor of Authentication (AFA) validation. If the cardholder selects multiple merchants for which to tokenise his/her card, AFA validation may be combined for all these merchants.

3. The tokens thus generated shall be made available on the merchant's payment page, in the cardholder's account with the merchant.

4. The cardholder may tokenise the card at any time of his convenience, either on receipt of the new card or later.

5. The card issuer shall provide a complete list of merchants for whom it can provide tokenisation services. The cardholders shall select the merchants with
whom he/she wishes to maintain tokens. (Alternatively ''The cardholder can make his selection from the list'').

6. The card token so issued may be either by the card network or the issuer or both.

7. All other provisions of RBI circulars dated January 8, 2019, August 25, 2021, September 7, 2021 and July 28, 2022 shall remain applicable.

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