Under the new plan of the central bank, users will have to memorize all their card details, including the 16-digit card number if they want to proceed with any online transaction. The move is an attempt to safeguard money transfers online and reduce fraud.
The CVV number, which since long remained the only 3 digits to be entered before approving an online transaction will now be combined with the requirement of the card number, name of the cardholder, and expiry date for every use.
As per media reports, the new rules are expected to come into effect in January 2022.
If this does into force, renewing subscriptions like Netflix, Disney+Hotstar, or making a purchase on Amazon and Flipkart, or even transferring money from GooglePay or Paytm will require complete card details.
Though entering details every time one makes a transaction seems like a mundane task, the RBI said the regulations are directed towards preventing e-commerce platforms like Amazon, Flipkart and payment transfer apps like GooglePay and Paytm, from storing the confidential card information of thousands of users. This will disallow them from saving the details on their databases and servers, ensuring safety for all customers.
ALSO READ: Several factors still hinder monetary transmission to Bank Rates : RBI
As per the current scenario, these e-commerce platforms and websites save the card details and financial information of all customers on their servers. The payment gateways then use this information during the checkout process to verify and allow the transaction to be processed. However, presently users only need to type in their 3-digit CVV (card verification value) written on the back panel of a debit or credit card. Along with this, customers chip in an OTP or a One-Time password sent to the registered mobile number. These have by far remained the only verification requirements to make a purchase or transaction and CVV digits only had to be remembered by people.
However, with the new regulations, card holders will have to memorize not just the CVV but the entire 16-digit card number and expiry date to do future transactions if they do not want to pull out their card every time they need the details.
