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New Debit Card, Credit Card Tokenisation Rules To Change from July 1, 2022

Reserve Bank of India (RBI) last year had issued debit and credit card tokenisation rules, keeping in mind customer safety. Under the rules, merchants were barred from storing customer card data in their servers.


card tokenisation rules will now come into effect from July 1, 2022.

RBI had made adoption of card-on-file tokens for domestic online purchases mandatory. The deadline for adoption of card tokens across the country was extended by six months from January 1, 2022 to July 1, 2022.

Rule 1) Card-issuers shall ensure that there is no delay in sending/dispatching/emailing bills/statements and the customer has sufficient number of days (at least one fortnight) for making payment before the interest starts getting charged.

In order to obviate frequent complaints of delayed billing, the card-issuer may consider providing bills and statements of accounts through internet/mobile banking with the explicit consent of the cardholder.

Card-issuers shall put in place a mechanism to ensure that the cardholder is in receipt of the billing statement.

Rule 2) Card-issuers shall ensure that wrong bills are not raised and issued to cardholders.

In case, a cardholder protests any bill, the card-issuer shall provide explanation and, wherever applicable, documentary evidence shall be provided to the cardholder within a maximum period of 30 days from the date of complaint.

Rule 3) No charges shall be levied on transactions disputed as ‘fraud’ by the cardholder until the dispute is resolved.

Rule 4) Card-issuers do not follow a standard billing cycle for all credit cards issued. In order to provide flexibility in this regard, cardholders shall be provided a one-time option to modify the billing cycle of the credit card as per their convenience.

Rule 5) Any credit amount arising out of refund/failed/reversed transactions or similar transactions before the due date of payment for which payment has not been made by the cardholder, shall be immediately adjusted against the ‘payment due’ and notified to the cardholder.

Rule 6) Card-issuers shall seek explicit consent of the cardholder to adjust credit amount beyond a cut-off, one percent of the credit limit or ₹5000, whichever is lower, arising out of refund/failed/reversed transactions or similar transactions against the credit limit for which payment has already been made by the cardholder.

The consent shall be obtained through e-mail or SMS within seven days of the credit transaction.

The card-issuers shall reverse the credit transaction to the cardholder’s bank account, if no consent/response is received from the cardholder.

Notwithstanding the cut-off, if a cardholder makes a request to the card-issuer for reversal of the credit amount outstanding in the card account into his/her bank account, the card-issuer shall do it within three working days from the receipt of such request.



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