From phone numbers to several other important numbers and passwords, have become a vital part of everyone's lives for making online transactions. Meanwhile, RBI - India's Central Banking Institution, now wants the credit and debit card users to manually enter all details of their card for every online transaction.
According to the Reserve Bank of India's upcoming revised guidelines of data storage policy which is likely to be implemented in January 2022, the users will have to manually enter their 16-digit card number, CVV and expiry date for all types of online transactions. This especially will be a hassle for people who use more than one card.
Earlier this year, 25 digital-only companies like Amazon, Netflix, Microsoft, Zomato and Flipkart wrote a joint letter to the RBI pointing out the fact that these rules will affect users' payment experience and also lead to an impact on fraud risk assessment.
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Rejecting the proposal of the payment gateways, the Reserve Bank of India says that this move will help prevent online merchants, e-commerce websites, and payment aggregators from storing the card details of a user either on their servers or databases.
The revised guidelines will mean that every time a user purchases on Amazon or Flipkart, pays through Paytm or Google Pay or renews their Netflix subscription, they have to enter all details afresh.
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Though this move will slow down the process of an online transaction and affect the convenience a user enjoys currently, RBI argues that the goal of this revision is to not let third parties store card details on their systems and ensure the risk of online fraud and financial theft is eliminated.