Tech companies not yet ready for tokenization

Despite assuming otherwise, Tech companies are yet not ready to go ahead with tokenization and are demanding to wait for two more years to agree to the process. 

Mostly all the top technology and internet groupings are fastly approaching to file a petition for the central bank to delay the implementation of tokenization. 

The current mandate on the process stresses that the online merchants must erase all stored payment details of the customers by December 31.

As per the statement by these tech companies, the trade bodies such as Nasscom and the Alliance of Digital India Foundation (ADIF) are striving for a phased implementation of the new mandate in the span of two years. 

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According to many of these companies, there will be a large-scale disruption if the mandate is passed and is hurried in any sort of way. There will be chaos all over the online payment platforms and especially at the time of New Year and Christmans, it is better that the Reserve Bank of India does not rush certain things. 

Sijo Kuruvilla George, executive director of ADIF, a company that represents brands like Paytm and BharatMatrimony said, “We are asking for more time, no one wants to wake up to mayhem on January 1.”

Other organisations like the Payments Council of India  believed that the RBI is seeking a big, impactful systematic change which essentially requires a very smooth transition. For this very reason, the central bank will seek inputs from companies before approaching the bank this week with their individual representation.

“There are huge challenges for merchants. Even if a particular bank or network is ready, it doesn’t translate into readiness of the entire ecosystem,” Ashish Aggarwal, vice-president-public policy at Nasscom.