HENCY R SHAH AND ASSOCIATES

"RBI Report: Rise in Counterfeit Currency and Digital Fraud Challenges Banking System" According to the annual report for 2022-23 released by the Reserve Bank of India (RBI), there has been an increase in the detection of counterfeit currency notes in the banking system. The report indicates that there was a rise of 14.4 percent in counterfeit currency notes of ₹500 denomination, while those of ₹20 denomination saw an increase of 8.4 percent. Out of all the fake currency notes detected, 4.6 percent were found at the RBI, while 95.4 percent were detected at other banks. On the other hand, counterfeit notes of ₹10 denomination decreased by 11.6 percent, ₹100 denomination notes declined by 14.7 percent, and ₹2,000 denomination notes decreased by 27.9 percent. In terms of value, the share of ₹500 and ₹2,000 banknotes increased to 87.9 percent of the total value of notes in circulation as of March 31, compared to 87.1 percent from the previous year. In terms of volume, ₹500 bankno...

  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...