MUMBAI : The 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.
The RBI has ordered all companies in India to purge saved credit and debit card data from their systems from Jan. 1, 2022. "We estimate revenue losses of about 20-40per cent for merchants, with the smaller firms being more adversely impacted," he added. "So not only will card transactions decline but cash in circulation will also go up, which is another concern."
"The RBI is expecting the entire industry to come on to tokenisation, complete testing, move forward in less than four months, that is a very extreme ask from the industry," the executive added.