Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q40: What is the primary function of Card-on-File Tokenisation (CoFT), as introduced by the Reserve Bank of India in 2021?

A
It replaces actual card details with a unique 'token' to enhance transaction security
B
It allows users to store multiple cards in a single physical device
C
It enables offline payment transactions using a debit card
D
It consolidates all card network arrangements into one platform
✅ Correct Answer: A
Card-on-file tokenisation (CoFT) was introduced by the RBI to enhance security.
Its primary function is to replace the actual card details with a unique alternate code called a 'token', preventing the storage of sensitive data.
This security measure is praised in the RBI's Payment Systems Report - June 2025.