New rules for debit and credit cards are effective from today

 New rules for debit and credit cards are effective

 from today..! What is Tokenization? 

What you need to know

New Delhi: Instead of 3 rules related to credit cards from today, what are the consequences for common people? From October 1, these 3 new rules related to credit cards will come into force.

These new rules include new restrictions related to credit card cancellation, billing etc. It also includes rules governing credit and debit card tokenization. It also includes rules governing credit and debit card tokenization. Earlier, the new rules related to debit and credit cards (Credit Card) were to be implemented from July 1, but now the last date for tokenization is 30 September 2022. The number of tokenized cards has increased from the 19.5 crore tokens created in June. Formerly RBI. The extension was also given to create awareness among the public about the process of creating tokens and using them to carry out transactions.

From October 1, these 3 new rules related to credit cards will come 

into force. Through this card holders will get better service along with security.

An additional layer of security through tokenization is expected to enhance users' digital payment experience. The deadline has been extended several times over the past two years at the request of stakeholders, and most recently by three months from July, so that the industry can use the extra time to facilitate all stakeholders to be ready to handle tokenized transactions. On September 30, the RBI had tokenized around 35 crore cards and said the system would be ready for the new norms from October 1.

OTP based consent is required

A credit card issuing bank requires a One Time Password (OTP) based consent from the cardholder to activate the card. If the customer does not activate the card for more than 30 days from the date of issue. The card issuer is required to close the credit card without charge within 7 days of the customer's request.

Credit card limit approval

Further, card issuing banks should ensure that the credit limit sanctioned and sanctioned to the cardholder is not breached at any time without obtaining express consent from the cardholder. The card issuer cannot change the card limit without consulting the card holder. That is, to change the credit limit, the customer has to provide information on behalf of the card issuer and take permission from the customer.

Interest rate

There is no unpaid fee/tax for accruing/compounding interest on the credit card. As per RBI circular, unpaid charges/taxes cannot be capitalized in terms of compound interest. So that customers do not get stuck in the trap of credit card interest. Now companies will not be able to charge compound interest on bills from October 1.

The Reserve Bank of India (RBI) has made it mandatory to replace all credit and debit card data used in online point-of-sale and in-app transactions with tokens by September 30. By tokenizing the card, this extra layer of security prevents user fraud and gives them a better digital payment experience.

Here are some frequently asked questions about card tokenization:

What is Tokenization?

According to RBI, tokenization refers to replacing the actual card details with an alternative code called "token".

What is the benefit of tokenization?

A tokenized card transaction is considered secure as the actual card details are not shared with the merchant during the transaction process.

How can tokenization be implemented?

A cardholder can tokenize a card by initiating a request in an application provided by a token requester. The token supplicant transmits a request to the card network, which, with the consent of the card issuer, issues a token corresponding to the combination of card, token requestor, and device.

Who can perform tokenization?

Tokenization can be performed only by an authorized card network and the list of authorized entities in this regard is available on the RBI website.

What are the charges to be paid by the customer to

 avail this service?

Customers do not have to pay any fee to avail this service.

What are the use cases (instances/scenarios) where tokenization is allowed?

Tokenization is allowed for all use cases/channels via mobile phones and/or tablets (e.g. contactless card transactions, payments via QR codes, apps etc.)

Is tokenization of card mandatory for customers?

No, the customer can choose whether to allow their card to be tokenized or not. Those who do not wish to generate a token can continue the transaction as before by entering the card details manually at the time of transaction.

Commercial use LPG cylinder price

 reduction, new rate applicable from today

 New Delhi: The price of cylinders for commercial use has been reduced by Rs 25 5 paise and the new revised rate will be effective from October 1. According to the Oil Authority of India notification, the revised rate will come into effect today. Due to the price reduction, the price of a 19 kg commercial LPG cylinder in Delhi will be Rs 859,000. Earlier, the price of a commercial cylinder there was Rs 1,885. In the capital Bangalore today, the price of a commercial cylinder is Rs 1,685 5 paise. Last month, on September 1, the price of commercial cylinders was reduced. Before that, the rate was revised on July 6. Domestic LPG price remains unchanged