RBI Expands Card Tokenisation: A Leap Towards Enhanced Digital Payment Security

Empowering Users and Strengthening Security: RBI’s Inclusive Approach to Card Tokenisation


In a significant move towards fortifying digital payment security, the Reserve Bank of India (RBI) has recently broadened the scope of card tokenisation, extending this valuable service to individuals through internet and mobile banking platforms. This development marks a crucial step in making digital transactions more secure, convenient, and reliable.

The Evolution of Card Tokenisation:

Initially confined to merchant applications and websites, card tokenisation has now evolved to include card issuing banks and institutions. This expansion opens up new avenues for users, allowing them to seamlessly tokenise their debit and credit cards through internet and mobile banking services.

Key Features of the RBI’s Card-On-File Tokenisation (CoFT):

  1. Convenience for Individuals: The RBI’s decision to enable card-on-file tokenisation through card issuing banks brings unparalleled convenience to individuals. Now, users can securely tokenise their cards directly through internet and mobile banking platforms, streamlining the process and enhancing user experience.
  2. Enhanced Digital Payment Security: The primary objective behind this expansion is to reinforce the security of digital payments. By allowing card issuers to facilitate tokenisation services, the RBI aims to establish a more robust and secure ecosystem, protecting users from potential threats and ensuring the integrity of digital transactions.
  3. Complete List of Merchants: To ensure transparency and compliance, the card issuer must furnish a comprehensive list of merchants for whom they can provide tokenisation services. This requirement safeguards the interests of both users and financial institutions, fostering a trustworthy environment for digital transactions.
  4. Seamless Integration with Banking Services: The integration of card tokenisation into internet and mobile banking services streamlines the entire process. Users can now enjoy the benefits of enhanced security without compromising on convenience, marking a positive shift towards a more user-friendly digital payment landscape.


The Reserve Bank of India’s decision to extend the scope of card tokenisation is a significant leap towards fostering a secure and seamless digital payment ecosystem. By enabling individuals to tokenise their cards through internet and mobile banking services, the RBI is not only enhancing user convenience but also prioritising the security and integrity of digital transactions. This move reflects a forward-thinking approach in adapting to the evolving landscape of digital finance, making strides towards a safer and more user-centric future.

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