According to recent reports, the Reserve Bank of India (RBI) is bringing in a new set of guidelines that is going to change the process of online payments in the country. The new guidelines from RBI will now prohibit payment gateways and online merchants from saving or storing customers’ card details. Consequently, the customers who use cards to make payments will now have to either remember the sixteen-digit card number or carry it with them. The reports suggest that the guidelines were previously scheduled to come into effect from July of 2021 but now are set to begin implementation from January 1, 2022.
All About New Guidelines
The new guidelines prohibiting storing details of cards used by customers will implement on all whether online shopping platforms like Amazon, Flipkart as well as the payment collectors such as Google Pay or Paytm and also streaming giants such as Netflix, Amazon Prime Video and more. The new guideline could make it a bit difficult for the customers as instead of simply entering the CVV number while making payments, they will be required to fill in the complete card details. In simpler words, what was possible with one tap and took seconds to make payment on any platform will now require customers to fill up all the full card details while making the payment.
The new guideline issued is definitely going to hinder the user experience and the whole idea of digital advancement. Earlier, most of the banks were against the guidelines, which resulted in the plan not being implemented during the month of July. RBI issued a circular on Tuesday in which it allowed an extension of the time period until December 31, 2021, for implementation of the said guidelines.
The new guidelines are being brought in by RBI in the light of making the online payment process more secure for the users; however, it also affirmed the fact that the process will become a tad bit tedious for the users. For example, users looking to check out of any shopping website will now have to enter the card number, expiry date as well as CVV to make the payment instead of a simple tap. In this regard, the major companies of India that deal with a high volume of online payments, such as Zomato, Flipkart, Amazon, Microsoft, Netflix, have already issued a petition to the central bank as the new guidelines could hamper the user experience while making payments.