I would like to believe that everybody knows about Tokenization. However, there is one thing that not everybody knows about, which is directly related to the introduction of this new thing.
We all know that the deadline for tokenization is 30 September 2022. So, we won’t be able to use our debit or credit cards from 1 October 2022 unless we get the tokenization done for our card.
How does Tokenization affect your SIP and EMI?
To understand how tokenization affects our SIP and EMI system, we need to go through the meaning of the term.
In order to protect the customers from fraud due to theft of sensitive details related to their debit or credit cards, RBI came up with the regulation of creating a token. This token will be generated with the merchant’s website and the merchant won’t be able to save the details of the customer.
After this, every time a merchant wants to use the card details of the customer, they will have to ask for it. RBI believes that doing this frequently will always have a fear of losing the customer in the merchant. This should ensure that the merchant shall offer the customer the desired safety in terms of his or her credit or debit card.
Finally, when it comes to the SIP and EMI, Systematic Investment Plan and Equated Monthly Instalment, the money gets deducted from the account automatically. In case you did not get your tokenization done before 30 September 2022, this money won’t get deducted automatically. In such a case, you will have to go through the tedious process of getting a token for your card.
What to do?
To save yourself the trouble, you must comply with the RBI Guidelines and get a token for your credit or debit card if you want your SIP and EMI to continue.
This article explained how tokenization will affect your SIP and EMI payments after 1 October 2022. Make sure to get this done so that you can have a smooth sail even after this amazing regulation is implemented to help you from fraud.
Share this article with people you actually care about and who are expecting their SIP or EMI deduction in the future.