RBI’s new mandate will change the way you handle your online payments. The Reserve Bank of India has a new set of guidelines for payment gateways and online merchants that would stop them from storing customers’ card details. This clearly means that you will have to remember your 16 digit card number or carry the card wherever you go when shopping online. The new rules were earlier scheduled to go into effect from July 2021, but they will now come into force in January 2022.
The online shopping websites, including Amazon, Flipkart and the payment aggregators including Google Pay, Paytm and streaming giants, including Netflix, Flipkart and others, will no longer be allowed to store the card details of the customers. This will make things all the more difficult for users as in place of entering only their CVV numbers, users will have to enter their card details every time they want to make an online payment. Especially in scenarios where you would want to tap on card details on an online platform to get done with the payment in seconds, you will now sit and enter your entire card details for every payment you make.
At a time when digital India is being promoted, the new RBI guidelines would hamper the online payments experience. Since most banks have not agreed to comply with the rules scheduled to go into effect in July 2021, they will now come into force in January 2022.
“Based on the representations received from the industry seeking additional time for implementing the above instructions, it has been decided, as a one-time measure, to extend the timeline for non-bank PAs by six months, i.e., till December 31, 2021, to enable the payment system providers and participants to put in place workable solutions, such as tokenisation, within the framework set out,” the RBI said in a circular issued on Tuesday.
RBI has argued that the new rules will make payments secure, but it will make things tedious for users. For instance, if you want to renew your Netflix or Prime Video subscriptions, you will have to enter the card number, the expiry date and the CVV number to process the payments. In cases like this, you will be only left with two choices— you either have to memorise your entire card details or carry your card with yourself.
Companies including Flipkart, Amazon, Netflix, Microsoft and Zomato have written to India’s central bank arguing that the new guidelines would severely affect the online payment experience.