RBI allows ‘tokenisation’ services

  • The RBI allowed the card payment providers to offer tokenisation services.
  • ‘Tokenisation’ will ensure the safety of digital transactions and reduce the chances of fraud.
  • It involves a process in which a unique token hides the sensitive card details.
  • The token is used to perform card transactions in contactless mode at Point Of Sale (POS) terminals, Quick Response (QR) code payments, etc.