RBI introduces card tokenisation facility at bank level

Current Context: The RBI on 20th December, introduced a Card-on-File (CoF) token facility at the level of banks and other institutions to provide convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications.

• This facility is designed to provide convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications.
• The tokenisation process involves replacing actual card details with an alternate code called the “token”.
• This token is unique for a combination of card, token requestor (the entity which accepts the request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token), and device.
• This makes online transactions more secure as the actual card details are not shared with the merchant during transaction processing.

Question:

Q.1 What is the purpose of the Card-on-File (CoF) tokenisation facility introduced by the RBI?
a. To increase the cost of online transactions
b. To provide convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications
c. To discourage the use of digital payments
d. To share actual card details with the merchant during transaction processing