ADIF update: RBI extended card tokenization deadline, our response to Google moving Karnataka HC against CCI probe, and more
ADIF’s work and latest activities
We joined hands with MPAI to write to the RBI about the lack of industry preparedness on card-on-file tokenization… The Merchant Payments Alliance of India and ADIF sought a phased implementation of the new mandate and a minimum time frame of 6 months to comply post readiness of banks, card networks, and payment aggregators/ payment gateways.
According to Sijo Kuruvilla George, Executive Director, Alliance of Digital India Foundation:
“In the scenario that banks are lax on preparedness, the brunt of that will be borne by merchants in the form of loss of revenue – we are looking at revenues losses of anywhere between 20-40% at the minimum should that be the case. It’s also important to note that it’s only after the readiness of bank, card networks and API’s are made available that merchants are even able to take effective measures on their part to comply.”
Read the full press release here.
…and soon after, the RBI extended the card tokenization deadline by 6 months. We at ADIF welcomed the move and further urged the Central Bank to ensure readiness across all banks in a timely manner.
ADIF further stressed that unless banks are compliant, merchants will not be able to successfully process tokenised transactions and have consumer-ready solutions.
ReserveBankOfIndia @RBIRestriction on storage of actual card data [i.e. Card-on-File (CoF)] https://t.co/14RFkpDpZl
Read the full statement here.
Google moved the Karnataka HC against CCI probe. The internet giant filed a writ petition in the Karnataka High Court seeking more time to respond to the Competition Commission of India's questions into its Play store rules.
ADIF termed this challenge yet another delay tactic. Reluctance on the part of Google to comply with the requirements of the antitrust proceedings in a timely and upfront manner is at odds with the public posturing the company has adopted alongside their policy revision announcements that the company is making every effort in the interest of the Indian startup ecosystem and fair resolution.
According to Sijo Kuruvilla George:
“This legal challenge by Google is yet another delay tactic and an attempt to frustrate the antitrust process. It also calls into question their good faith. The only commitments that has been consistent on the part of Google throughout this entire antitrust process has been their commitment to a) delay the process in every way possible and b) protecting their super profits from the app economy abusing its dominance. We exhort Google to comply with the antitrust process in good faith and as per the directives of the CCI.”
Read the full statement here.
ADIF in the news
Debangana Ghosh, a reporter at the Hindu Business Line, wrote about how India’s digital economy boomed in 2021, and how it is likely to accelerate further in 2022 even as regulations kick in.
Sijo Kuruvilla George was quoted as saying:
“With more liquidity in hands, founders are making more aggressive bets in terms of acquisitions. The ambitions and beliefs of the new crop of founders are way bolder and more global.”
Our stance on RBI’s tokenization policy also made the news.
Our alliance is growing bigger and stronger
ADIF’s alliance is now over 470-members strong and we are eager to have each and everyone who is vested in the success of the Indian startup ecosystem as a part of our alliance.
Find out more about our newest members here.
We’d like to invite you to be a part of our social media network to stay up to date on our progress and the digital startup ecosystem. You can follow us on Twitter, Instagram, LinkedIn, and Facebook.
We’d also love for you to help amplify our voice by engaging with our posts and liking/re-tweeting them.
That’s all for this time, thank you for reading!
We look forward to your feedback to improve this newsletter and make it more relevant to you. You can e-mail me at email@example.com.
Content & Editorial, ADIF