RBI's push for card security to hit merchants, lenders
The HinduThe Reserve Bank of India's plans to move towards card tokenisation is likely to hit a wide range of companies from major e-commerce firms and food delivery firms to lenders, while increasing the use of cash, said industry sources and bankers. "Introducing an additional step in payments adds friction and several studies show that customers may end up dropping out in case of a discretionary purchase," said Sijo Kuruvilla George, who heads the New Delhi-based think-tank Alliance of Digital India Foundation, which represents Indian startups. "Not all banks are going to be ready by January and even if they are, it is likely that to avoid inconvenience, customers may opt for a one-step cash on delivery, instead of keying in details," said a banker with a leading Indian lender, who asked not to be named because he is not authorised to speak to themedia. Credit card transactions in India crossed the 1 trillion rupees mark in October while other modes of digital payments have The industry is still waiting for clarity on how cash back schemes and monthly-installment type card purchases will work and has asked the central bank for more clarity and time, said an executive at an internet firm, who asked not to be named as the information is not public.