**Summary:**
This policy update, issued by the Reserve Bank of India (RBI) on August 25, 2021, expands the scope of permitted devices for card tokenization. The original circular DPSS.CO.PD No.1463/02.14.003/2018-19, dated January 08, 2019, initially allowed card tokenization services only for mobile phones and tablets. This revision now includes consumer devices such as laptops, desktops, wearables (wrist watches, bands, etc.), and Internet of Things (IoT) devices. The RBI's decision follows a review of the existing framework and stakeholder feedback, aiming to enhance the safety, security, and convenience of card transactions for users. All other provisions outlined in the original circular remain in effect. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). For further information, contact P. Vasudevan, Chief General Manager, Department of Payment and Settlement Systems, Central Office, Reserve Bank of India, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001. Tel: 91-22-2264 4995; Fax: 91-22-22691557; email: cgmdpsscorbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Tokenisation: The process of replacing sensitive card details with a unique token to protect cardholder information during transactions.
Card Networks: Entities that facilitate card payments, such as Visa, Mastercard, etc.
DPSS.CO.PD No.146302.14.003201819: Reference to the earlier circular regarding Tokenisation of Card transactions.
Internet of Things (IoT): Network of physical objects embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.
Payment and Settlement Systems Act, 2007: An act of the Indian Parliament that provides for the regulation and supervision of payment systems in India.
P. Vasudevan: Chief General Manager, Department of Payment and Settlement Systems, Reserve Bank of India.
Mumbai, Maharashtra: City in India where the Central Office of Department of Payment and Settlement Systems is located.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2021-22/92
CO.DPSS.POLC.No.S-469/02-14-003/2021-22 August 25, 2021
The Chief Executive Officer / President
All authorised card networks
Madam / Dear Sir,
Tokenisation – Card Transactions : Extending the Scope of Permitted Devices
We invite reference to our circular DPSS.CO.PD No.1463/02.14.003/2018-19 dated January 08,
2019 on “Tokenisation – Card transactions”, permitting authorised card networks to offer card
tokenisation services to any token requestor, subject to the conditions listed therein. The facility
was available only for mobile phones and tablets of interested card holders. There has been an
uptake in the volume of tokenised card transactions during the recent months.
2. On a review of the framework and keeping in view stakeholder feedback, it has been decided
to extend the scope of tokenisation to include consumer devices – laptops, desktops, wearables
(wrist watches, bands, etc.), Internet of Things (IoT) devices, etc. All other provisions of the
circular referred to above shall continue to be applicable. This initiative is expected to make card
transactions more safe, secure and convenient for the users.
3. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement
Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(P. Vasudevan)
Chief General Manager
भुगतान और िनपटान �णाली िवभाग, क��ीय कायार्लय, 14वीमंिजल, क��ीयकायार्लयभवन,शहीदभगत�संहमाग,र् फोटर्, मम्ुबई - 400001
फोनTel: (91-22) 2264 4995; फैक् सFax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai -
400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइए