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With reference to ‘Card Tokenization guidelines’ announced by Reserve Bank of India (RBI), consider the following statements
  1. Tokenization refers to replacement of card details with an alternative code for every transaction
  2. No entity in the card transaction/payment chain shall store the actual card data for more than 2 months
  3. The guidelines are applicable to every device that connects with the internet including wrist watches, bands
Select the correct statements using the appropriate code given below
  • a)
    1 and 2 only 
  • b)
    2 and 3 only 
  • c)
    1 and 3 only 
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to ‘Card Tokenization guidelines’ announced...
Statement Analysis:
Statement 1
Correct

Tokenization refers to replacement of card details with an alternative code called a ‘token’, which is unique for a combination of card, token requestor (the entity that accepts a request from the customer for tokenization of a card and passes it on to the card network to issue a token) and the device
Statement 2
Incorrect

With effect from January 1, 2022, no entity in the card transaction/payment chain, other than the card issuers and/or card networks, shall store the actual card data.
Statement 3
Correct

The guidelines extend the tokenization guidelines to every device that connects with the internet, including mobile phones, tablets, laptops, desktops, wrist watches, bands, Internet of Things devices as well as payment aggregators.
Context – RBI recently announced new guidelines for card tokenization.
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With reference to ‘Card Tokenization guidelines’ announced by Reserve Bank of India (RBI), consider the following statements Tokenization refers to replacement of card details with an alternative code for every transaction No entity in the card transaction/payment chain shall store the actual card data for more than 2 months The guidelines are applicable to every device that connects with the internet including wrist watches, bandsSelect the correct statements using the appropriate code given belowa)1 and 2 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
Question Description
With reference to ‘Card Tokenization guidelines’ announced by Reserve Bank of India (RBI), consider the following statements Tokenization refers to replacement of card details with an alternative code for every transaction No entity in the card transaction/payment chain shall store the actual card data for more than 2 months The guidelines are applicable to every device that connects with the internet including wrist watches, bandsSelect the correct statements using the appropriate code given belowa)1 and 2 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to ‘Card Tokenization guidelines’ announced by Reserve Bank of India (RBI), consider the following statements Tokenization refers to replacement of card details with an alternative code for every transaction No entity in the card transaction/payment chain shall store the actual card data for more than 2 months The guidelines are applicable to every device that connects with the internet including wrist watches, bandsSelect the correct statements using the appropriate code given belowa)1 and 2 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to ‘Card Tokenization guidelines’ announced by Reserve Bank of India (RBI), consider the following statements Tokenization refers to replacement of card details with an alternative code for every transaction No entity in the card transaction/payment chain shall store the actual card data for more than 2 months The guidelines are applicable to every device that connects with the internet including wrist watches, bandsSelect the correct statements using the appropriate code given belowa)1 and 2 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
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