Consider the following statements about Card-on-File

Solution

In order to make digital payments more secure, safe and sound the he Reserve Bank of India (RBI) has now enabled card-on-file tokenisation (CoFT) through card issuing banks and institutions.   Tokenisation refers to replacement of actual credit and debit card details with an alternate code called the “token”.  It is a combination of card, token requestor and device.  The card detail when stored with a merchant is known as card-on-file (CoF).   This token is a randomly generated string of characters that has no intrinsic value and is meaningless outside of the context of a specific transaction.  The token is used as a surrogate for the actual card details, making it more secure to store and transmit.