The Reserve Bank of India (RBI) has made it mandatory for all credit and debit card data used in online, point-of-sale, and in-app transactions to be replaced with unique tokens by September 30 this year.

The deadline was extended by three months starting July.

What is tokenisation

As per the RBI, tokenisation refers to the replacement of actual card details with an alternate code called the "token".

Benefit of tokenisation

A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during the processing of the transaction.