HENCY R SHAH AND ASSOCIATES

  Tokenization of debit and credit cards The RBI has directed payment aggregators, wallets, and online merchants (other than card issuers/card networks) not to store any sensitive card-related customer information, including full card details. As a result, the card numbers can be replaced with a ‘token’. The RBI mandate would take effect on October 1, 2022. According to the RBI, this development will make card transactions more secure.     What is Tokenization? Tokenization is the process of replacing a card’s 16-digit number on the plastic card with a unique alternate card number, or ‘Token’ which shall be unique for a combination of card, token requestor, and device. Tokens can be used for online transactions, mobile point-of-sale transactions, or in-app transactions. This token contains no personal information that can be directly accessed and keeps changing making it the most secure method to complete payments. Here’s how to generate your token The...

 Festival Sale: Trend or Trap? The festive season is almost here, and with this, it brings festive sales. E-commerce giants have announced Festival sale, one of the biggest annual sales that the company hosts each year. They are offering discounts, exchange offers, no-cost EMI options and more across a wide range of products. Sale results in impulsive buying. In addition, GenZ consumers, young millennials, and first-time credit borrowers, who are typically overlooked or underserved by traditional banks, choose Buy Now Pay Later since it is so easy to acquire credit but BNPL service must be used with precautions otherwise it will lead to a debt trap when a person is unable to pay the amount. BNPL has become popular among millions of young consumers who are short on cash and don’t have a standard credit card. In India, several online retailers and financial institutions provide short-term financing options, making it a practical substitute for credit cards.   Di...

How will the new National Logistics Policy be a game changer for the Indian economy The National Logistics Policy has come at the right time, as seamless connectivity, superior infrastructure, and strong export and logistics efficiency are essential to achieve these ambitious goals.  India aims to become a $20 trillion economy by 2040 and a developed nation by 2047. The National  Logistics  Policy has come at the right time, as seamless connectivity, superior infrastructure, and strong export and logistics efficiency are essential to achieve these ambitious goals.  Currently, the logistics costs in India are 13-14% of the GDP, compared to 7-8% in developed countries. Prime Minister  Narendra Modi , while launching the policy, said that the aim is to bring the logistics cost to single-digit as soon as possible. The higher logistics costs are reducing the competitiveness of India’s exports. Reports suggest that hig...