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  • All you need to know about the New  Labour Codes

    India is likely to implement four new labour codes on wages, social security, industrial relations, and occupational safety by the next fiscal year beginning 2022.

    Must read:

    [Burning Issue] New Labour Laws

    New Labour Codes

    The four codes likely to be implemented in FY23 are:

    1. Code on Wages
    2. Industrial Relations Code
    3. Social Security Code, and
    4. Occupational Safety, Health and Working Conditions Code

    Objectives of the Labour Code

    • The new labor codes are aimed at facilitating ease of doing business in the country and seek to replace 29 cumbersome laws.
    • The objective is to encompass over 500 million organized and unorganized sector workers—90% of the workforce which has been outside labour laws.
    • The idea is to ensure that they receive wage security, social security and health security, gender equality in terms of remuneration, a minimum floor wage, make the lives of inter-state migrant workers easier.

    What is the current status of the codes?

    • The central government has completed the process of finalizing the draft rules, state governments are in the process of drafting the same.
    • With labor being a concurrent subject, states are in the process of pre-publishing draft rules for these reforms.

    How many labour laws do Indian states have?

    • The simplification of 29 labour laws into the four labour codes is expected be a watershed moment for labour reforms.
    • India currently has a web of multiple labour legislations, over 40 central laws and 100 state laws involving labour.
    • The Second National Commission on Labour (2002) recommended simplification to bring about transparency and uniformity.

    What are the major goals in these codes?

    • Social security benefits: With organized sector workers being approximately 10% of the total workforce, the new codes may ensure that social security benefits are for all.
    • Take-home salary: As per the proposed labour codes, total allowances such as house rent, leave, travel etc. are to be capped at 50% of the salary, while basic pay should account for the remaining 50%.
    • Four days work: There could also be a permissible four-day work week of 12 hours per day.

    How will it affect ease of doing business?

    • Labour productivity: It is likely to improve with both employees and employers developing a sense of being partners in wealth creation.
    • Labour reform: A transparent environment in terms of workers’ compensation, clear definition of employee rights and employer duties.
    • Compliance un-burdening: Simplified labour codes making compliance easier are likely to attract investments.
    • Formalization of the economy: With more workers in the organized sector, leakage in terms of direct as well as indirect taxes may be plugged.

     

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  • Trincomalee Oil Farms Deal

    After a year of negotiations, Sri Lanka will ink the deal with India to jointly develop the Trincomalee oil tank farms — a coveted project that has remained controversial for decades.

    About Trincomalee oil field

    • The facility, built by the British around World War II as a refueling station, has 99 storage tanks that look like giant wells.
    • They have a capacity of 12,000 kilolitres each.
    • Eighty-four of those are in the 800-acre Upper Tank Farm (UTF). For a good part of a century now, these tanks have remained unused, shrouded in a forest.
    • The Lower Tank Farm (LTF) has 16 tanks, spread across 50 acres.

    Historical background

    • Trincomalee harbor is the second deepest natural harbor in the world.
    • The British who were in control of the island decided to make this as their primary logistics station in the east after World War I.
    • It is also a lesser-known but important logistic station during World War II.
    • British started the oil storage project in 1924 and completed in late 1930s.
    • After that it was abandoned by the British in 1948 when Sri Lanka gained independence.
    • In 2002, the development of this tank farm was revived by an Indian company Indian Oil Corporation (IOC).

    History of India’s interest in Trincomalee

    • The development of the Trincomalee Oil Tank farm has been a recurring talking point in Indo-Lanka relations since 1987.
    • It was first mentioned in the Indo- Lanka Accord signed by PM Rajiv Gandhi and President Jayewardene.
    • Despite that, nothing really took off until 2003, when Indian Oil Corporation set up Lanka IOC, its Sri Lankan subsidiary.
    • The agreement remained dormant for years, until the Sirisena- Wickremesinghe administration tried revisiting it through the 2017 MoU.

    Significance of Trincomalee

    • Demography: Trincomalee is home to 3.7 lakh Muslim, Tamil and Sinhala people and Trincomalee, in Sri Lanka’s post-war years.
    • Tourism: It has emerged as a favorite destination for surfers from around the world, gradually transforming with plush resorts and restaurants dotting its coast.
    • Important sea route: Trincomalee remains in spotlight as a potential transit point for international trade routes, particularly drawing India which has known strategic interests there.
    • Balancing China: From India’s geostrategic viewpoint, Trincomalee is an important counterbalance to the southern Hambantota Port backed substantially by China.

    Hurdles to the Project

    • Public resistance: India-backed projects in Sri Lanka tend to draw way more public resistance from nationalists among the majority Sinhalese constituency than projects with Chinese or American involvement.
    • Anti-India sentiments: Observers in Sri Lanka attribute this to the “baggage” that Indian diplomacy carries, years after its intervention during different stages of Sri Lanka’s civil war.

     

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  • Every third informal worker is now registered on E-Shram Portal

    Every third informal sector worker in India is now registered on the e-Shram portal with registration on the portal crossing the 14 crore mark in four months.

    About E-Shram Portal

    • The Ministry of Labour and Employment has launched the E-Shram Portal for creating a National Database of Unorganized Workers (NDUW) this year.
    • The E-Shram portal will cover all unorganised workers of the nation and help link them to social security schemes of the Government of India.
    • Aadhaar with mobile number linked is mandatory for the registration.

    Category of unorganized workers covered:

    1. Construction Worker
    2. Migrant Worker
    3. Gig & Platform Worker
    4. Street Vendor Worker
    5. Agriculture Worker
    6. Others

    Broad objectives of this portal

    • Creation of a centralized database of all unorganized workers (UWs)
    • To improve the implementation efficiency of the social security services for the unorganized workers
    • Integration of Social Security Schemes meant for UWs being administered by MoLE and subsequently, those run by other ministries as well
    • Portability of the social security and welfare benefits to the migrant and construction workers
    • Providing a comprehensive database to Central and State Governments for tackling any National Crises like COVID-19 in future

    Benefits of registration

    • Under the scheme, Rs 2.0 Lakh Accidental Insurance cover will be provided to every registered (on E-Shram portal) unorganized worker.
    • Every registered unorganized worker shall be issued an E- Shram card with a unique Universal Account Number (UAN).
    • He/She will be able to access the benefits of the various social security schemes through this Card anywhere anytime.

    Who can register on this Portal?

    Any individual satisfying the following conditions can register on the portal:

    • An unorganized worker (UW).
    • Age should be between 16-59 years.
    • Not a member of EPFO/ESIC or NPS (Govt. funded)

    What is required for registration?

    Following is required to register on the portal:

    • Aadhaar Number
    • Mobile number linked with Aadhaar.
    • Savings Bank Account Number with IFSC code

    Registrations done so far

    • The latest data of the portal shows that the top five States in terms of number of registrations on e-Shram are U.P., West Bengal, Bihar, Odisha and Jharkhand.
    • Gender analysis of the data shows that 52.56% are female while 47.44% are male.
    • The data show that 42.64% of the registered workers are other backward classes (OBC) followed by 26.45% from general category, 22.54% from the scheduled caste and 8.38% from the Scheduled Tribe.
    • It also show that over 94% registered workers’ income is ₹10,000 per month or below while over 4% have income in the rage of ₹10,000 to ₹15,000 per month.
    • About 51% workers are farm laborers, 11% in construction, 10% in domestic and household work and 6.5% in the apparel segment.

     

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  • [pib] Good Governance Index 2021

    The Centre has released the Good Governance Index 2021 prepared by DARPG (Department of Administrative Reforms and Public Grievances) on Good Governance Day.

    Try this question from CS Mains 2016:

     

    Q. What do you understand by the terms ‘governance’, ‘good governance’ and ‘ethical governance’?

    What do you mean by Good Governance?

    • It is the process of measuring how public institution conduct public affairs and manage public resources and guarantee the realization of human rights in a manner essentially free of abuse and corruption and with due regard for the rule of law.

    12 Principles of Good Governance:

    1. Participation, Representation, Fair Conduct of Elections
    2. Responsiveness
    3. Efficiency and Effectiveness
    4. Openness and Transparency
    5. Rule of Law
    6. Ethical Conduct
    7. Competence and Capacity
    8. Innovation and Openness to Change
    9. Sustainability and Long-term Orientation
    10. Sound Financial Management
    11. Human rights, Cultural Diversity and Social Cohesion
    12. Accountability

    About Good Governance Index (GGI)

    • The GGI is a uniform tool across States to assess the Status of Governance and the impact of various interventions taken up by the State Government and UTs.
    • The objectives are:
    1. To provide quantifiable data to compare the state of governance in all states and UTs, enable states and UTs
    2. To formulate and implement suitable strategies for improving governance and shift to result-oriented approaches and administration

    Components of GGI

    • GGI 2021 Framework covered ten sectors and 58 indicators.
    • These ten Governance Sectors are measured on total 50 indicators:
    1. Agriculture and Allied Sectors
    2. Commerce & Industries
    3. Human Resource Development
    4. Public Health
    5. Public Infrastructure & Utilities
    6. Economic Governance
    7. Social Welfare & Development
    8. Judicial & Public Security
    9. Environment
    10. Citizen-Centric Governance

    Categorization of States and UTs

    The GGI 2020-21 categorizes States and UTs into four categories, i.e.

    1. Other States – Group A
    2. Other States – Group B
    3. North-East and Hill States and
    4. Union Territories

    Top performers in 2021

    • Gujarat, Maharashtra and Goa top the composite rank score covering 10 sectors.
    • GGI 2021 says that Gujarat registered 12.3 percent increase and Goa registered 24.7 percent increase over GGI 2019 indicators.
    • Rajasthan has topped the Other States (Group B) category in Judiciary and Public Safety, Environment & Citizen Centric Governance.
    • GGI 2021 says that in the North-East and Hill States category, Mizoram and Jammu and Kashmir have registered an overall increase of 10.4% and 3.7% respectively over GGI 2019.
    • In the UTs category, Delhi tops the composite rank registering a 14 percent increase over the GGI 2019 indicators.

     

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  • Study of distant Magnetar reveals facets of the Exotic Star

    An international group of researchers has succeeded in measuring for the first time the characteristics of a flare on a distant magnetar.

    What is a Magnetar?

    • Magnetars are the most magnetic stars in the universe.
    • It is a rare compact type of neutron star teeming with energy and magnetism.
    • It is an exotic type of neutron star, its defining feature that it has an ultra-powerful magnetic field.
    • The field is about 1,000 times stronger than a normal neutron star and about a trillion times stronger than the Earth’s.
    • Magnetars are relatively rare objects, with only about thirty having been spotted within the Milky Way so far.

    What is the recent study?

    • The studied magnetar is about 13 million light years away, in the direction of the NGC 253, a prominent galaxy in the Sculptor group of galaxies.
    • Its flare spewed within a few tenths of a second as much energy as the Sun would shed in 100,000 years.
    • It was captured accidentally on April 15, 2020, by the Atmosphere-Space Interactions Monitor instrument (ASIM) of the International Space Station.
    • This is the first study to characterize such a flare from so distant a magnetar.

    How do magnetars form?

    • During the course of their evolution, massive stars – with masses around 10-25 times the mass of the Sun – eventually collapse and shrink to form very compact objects called neutron stars.
    • A subset of these neutron stars is the so-called magnetars which possess intense magnetic fields.
    • These are highly dense and have breathtakingly high rotation speeds – they have rotational periods that can be just 0.3 to 12.0 seconds.

    What characterizes Magnetars?

    (1) Violent flares

    • The observed giant flare lasted approximately 160 milliseconds and during this time 1039 joules of energy was released.
    • The flare spewed as much energy in a tenth of a second that our Sun will radiate in 100,000 years.

    (2) Starquakes

    • Eruptions in magnetars are believed to be due to instabilities in their magnetosphere, or “starquakes” produced in their crust – a rigid, elastic layer about one kilometer thick.
    • This causes waves in the magnetosphere, and interaction between these waves causes dissipation of energy.

     

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  • Who was Archbishop Desmond Tutu?

    Archbishop Desmond Tutu, Nobel Peace Prize laureate and veteran of South Africa’s struggle against white minority rule has died on December 26 at the age of 90.

    Try this question from CS Mains 2016:

     

    Q. The anti-colonial struggles in West Africa were led by the new elite of Western-educated Africans. Examine.

    Desmond Tutu (1931- 2021)

    • Tutu was a South African Anglican cleric who in 1984 received the Nobel Prize for Peace for his role in the opposition to apartheid in South Africa.
    • A decade later, he witnessed the ends of that regime and he chaired a Truth and Reconciliation Commission, set up to unearth atrocities committed during those dark days.
    • He was considered the nation’s conscience by both, the black majority and the white minority, an enduring testament to his faith and spirit of reconciliation in a divided nation.

    His notable works

    • During South Africa’s moves toward democracy in the early 1990s, Tutu propagated the idea of South Africa as “the Rainbow Nation”.
    • The term was intended to encapsulate the unity of multi-culturalism and the coming together of people of many different nations, in a country once identified with the strict division of white and black under the Apartheid regime.
    • In 1995 South African Pres. Nelson Mandela appointed Tutu head of the Truth and Reconciliation Commission, which investigated allegations of human rights abuses during the apartheid era.

     

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  • In news: Tai Khamti Rebellion

    The Arunachal Pradesh Deputy CM urged the Centre to recognize the Tai Khamti-British war as India’s first for independence.

    Tai Khamti Rebellion

    • The Tai Khamti Rebellion is the first such war took place in 1839 between the Tai Khamti people and the British.
    • The theatre of this war was some 2,400 km east of Meerut in Uttar Pradesh where the mutiny began.
    • Tai Khamtis resisted colonization by the British. Some 80 British soldiers, including Col. Adam White, were killed in the resultant conflict.

    Who are the Tai Khamti people?

    • The Tai Khamti people, who follow Theravada Buddhism, number a little more than 1,00,000 today and live in areas straddling Arunachal Pradesh and Assam.

    Other revolts in Arunachal

    • Arunachal Deputy CM also batted for recognition of battles between other communities of Arunachal Pradesh and the British.
    • They include a series of Anglo-Abor wars from 1858 to 1911 and the Wancho-British war in Tirap district’s Ninu in 1875.
    • The Abors, now called Adis, inhabit central Arunachal Pradesh, while the Wanchos live in the southern part of the State.

     

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  • [Sansad TV] Perspective: All India Judicial Service

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    Context

    • There were reports of the Centre renewing attempts to build consensus with state governments and High Courts on setting of the AIJS.
    • However the government recently informed Parliament that only 2 states – Haryana and Mizoram, and two high courts, Tripura High Court and Sikkim High Court, are in favour of creating the AIJS.
    • As per govt data on High Courts, 13 have opposed the proposal, six have sought changes in it and others have not responded.

    All India Judicial Service (AIJS): A backgrounder

    • The AIJS is a reform push to centralize the recruitment of judges.
    • It would work at the level of additional district judges and district judges for all states.
    • In the same way that the UPSC conducts a central recruitment process and assigns successful candidates to cadres, judges of the lower judiciary are proposed to be recruited centrally and assigned to states.

    This idea has been debated in legal circles for decades, and remains contentious.

    How are district judges currently recruited?

    • Articles 233 and 234: These articles deal with the appointment of district judges, and place it in the domain of the states.
    • State PSC: The selection process is conducted by the State Public Service Commissions and the concerned HC since HCs exercise jurisdiction over the subordinate judiciary in the state.
    • Interview by HC judges panelists: They interview candidates after the exam and select them for an appointment.

    Why has the AIJS been proposed?

    The idea was to ensure:

    • Efficient subordinate judiciary
    • Address structural issues such as varying pay and remuneration across states
    • Fill vacancies faster
    • Ensure standard training across states

    Beginning of the debate

    • The idea of a centralized judicial service was first proposed in the Law Commission 1958 ‘Report on Reforms on Judicial Administration’.
    • It was proposed again in the Law Commission Report of 1978, which discussed delays and arrears of cases in the lower courts.
    • In 2006, the Parliamentary Standing Committee backed the idea of a pan-Indian judicial service, and also prepared a draft Bill.

    What is the judiciary’s view on the AIJS?

    • 1992: the Supreme Court directed the Centre to set up an AIJS in All India Judges’ Assam. vs Union of India
    • 1993: In review of the judgment, the court left the Centre at liberty to take the initiative on the issue.
    • 2017: The Supreme Court took suo motu cognizance of the issue of appointment of district judges, and mooted a “Central Selection Mechanism”.

    Need for AJIS

    • Huge vacancy of judges and delay in recruitment: Currently there are about 5400 vacant posts in lower judiciary across the country and a pendency of 2.78crore cases in lower judiciary.
    • Dearth of good quality judicial officers: The ever continuing decline in their qualityhas led to decline in the competence of overall judiciary.
    • Lack of finances: State judicial services are not attractive for ‘best talents’ due to low salaries, rewards and compensations by the state governments.
    • Lack of specialized training: Adjudication is a specialization which requires state of the art training institutes and professors but state institutes don’t allow such exposure to interns.
    • Discretion of a narrow body: The process of selecting a good judge is a difficult job and should not be left at the discretion of few persons (collegiums) however sagacious they may be.
    • Subjectivity in the process: Current judicial appointments suffer subjectivity, corruption and nepotism on the part of Collegium.

    Critical views on AJIS

    • Blow to federalism: AJIS is seen as an affront to federalism and an encroachment on the powers of states granted by the Constitution.
    • Language of Business: Language and representation, for example, are key concerns highlighted by states. Judicial business is conducted in regional languages, whi ch could be affected by central recruitment.
    • Quotas: A “national exam” risks shutting out those from less privileged backgrounds from being able to enter the judicial services.
    • Separation of power: The opposition is also based on the constitutional concept of the separation of powers.
    • Not a complete remedy: Additionally, legal experts have argued that the creation of AIJS will not address the structural issues plaguing the lower judiciary.
    • Mismanaged legal education: Curriculum followed by law universities, overseen by Bar Council of India, lacks effective standards barring few National Law Universities.

    Other limitations of AJIS

    • Legacy issues unaddressed: AIJS addresses neither the problem of disproportionately low pay nor unavailability of adequate judicial infrastructure in states nor the lack of career advancement.
    • Problem of local laws and customs: AIJS does not take into account the problem of local laws, practices and customs which vary widely across States, thus increasing the costs of training for judges selected through the mechanism.
    • Unnecessary bureaucratization: The argument that the centralization of recruitment processes through the UPSC automatically leads to a more efficient recruitment process is flawed and not a guarantee of a solution.

    Why is the government seeking to revive the idea of AIJS?

    • The government has targeted the reform of the lower judiciary in its effort to improve India’s Ease of Doing Business ranking.
    • It will act as efficient dispute resolution is one of the key indices in determining the rank.
    • AIJS is a step in the direction of ensuring an efficient lower judiciary.

    Centre’s argument for AJIS

    • The government has cited IAS officers’ examples.
    • It has argued that if a central mechanism can work for administrative services — IAS officers learn the language required for their cadre — it can work for judicial services too.

    Way forward

    In its report on Strategy for New India @75 which defines objectives for 2022-23, Niti Aayog suggested that

    • An all-India judicial services examination on a ranking basis can be considered to maintain high standards in the judiciary
    • There is a need to facilitate the availability and usage of video-conferencing facilities to assist in speedy access to justice and to minimize logistical issues.
    • To maintain judicial independence, the cadre should report to the Chief Justice in each High Court.

    The Supreme Court has recently suggested the establishment of the National Judicial Infrastructure Corporation (NJIC)  for the modernization of judicial infrastructure. This is also another welcome move in reforming India Judiciary.

    Conclusion

    • If we want to create a robust judicial system at the subordinate level, the constitution of an Indian judicial service is a sound idea.
    • Only a meritocratic service with a competitive recruitment, high-quality uniform training and assured standards of probity and efficiency would be able to ensure speedy and impartial justice in India.

  • [pib] Centre declares Soya Meal as an Essential Commodity

    In a bid to cool down the domestic prices of Soya Meal, Government has notified order under the Essential Commodities Act to declare ‘Soya Meal’ as Essential Commodities under the Essential Commodities Act, 1955.

    Essential Commodities Act

    • The ECA, 1955 was established to ensure the delivery of certain commodities or products, the supply of which, if obstructed due to hoarding or black marketing, would affect the normal life of the people.
    • The list of items under the Act includes drugs, fertilizers, pulses, and edible oils, as well as petroleum and petroleum products.
    • The Centre can include new commodities as and when the need arises, and takes them off the list once the situation improves.
    • Additionally, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.

    How ECA works?

    (1) Centre notifying stock limit holding

    • If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period.
    • The States act on this notification to specify limits and take steps to ensure that these are adhered to.
    • Anybody trading or dealing in the commodity, be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.

    (2) States can opt-out

    • A State can, however, choose not to impose any restrictions.
    • But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity.

    What happens for non-compliance?

    • As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished.
    • The excess stocks are auctioned or sold through fair price shops.
    • This improves supplies and brings down prices.

    Ex: The Union Government has brought masks and hand-sanitizers under the ECA to make sure that these products, key for preventing the spread of Covid-19 infection, are available to people at the right price and in the right quality. Later this move was reverted.

    What about Food Items?

    (1) Items covered:

    Rice, wheat, atta, gram dal, arhar dal, moong dal, urad dal, masoor, dal, tea, sugar, salt, Vanaspati, groundnut oil, mustard oil, milk, soya oil, palm oil, sunflower oil, gur, potato, onion and tomato.

    (2) Price Stabilization Fund (PSF):

    The government utilizes the buffer of agri-horticultural commodities like pulses, onion, etc. built under Price Stabilization Fund (PSF) to help moderate the volatility in prices.

    Recent amendments to the ECA

    In 2020, the EC Act was amended for the stock limit to be imposed only under exceptional circumstances such as famine or other calamities.

    • Exceptional circumstances: It allowed the centre to delist certain commodities as essential, allowing the government to regulate their supply and prices only in cases of war, famine, extraordinary price rises, or natural calamities.
    • Commodities de-regulated: The commodities that have been deregulated are food items, including cereals, pulses, potatoes, onion, edible oilseeds, and oils.

    Exceptions provided:

    • The government regulation of stocks will be based on rising prices, and can only be imposed if there is
    1. A 100% increase in retail price in the case of horticultural produce and
    2. A 50% increase in retail price in the case of non-perishable agricultural food items
    • These restrictions will not apply to stocks of food held for public distribution in India.

     

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  • What is Tokenization of Debit and Credit Cards?

    The Reserve Bank of India (RBI) has decided to defer the implementation of tokenization of debit and credit cards for online transactions by a further six months following representations from stakeholders.

    RBI decision

    • RBI has also extended tokenization of Card-on-File (CoF) transactions where card details are saved by merchants — and directed the merchants not to store card details in their systems from January 1, 2022.
    • A CoF transaction is one in which a cardholder has authorized a merchant to store his or her Mastercard or Visa payment details, and to bill the stored account.
    • E-commerce companies and airlines and supermarket chains often store card details.

    What is Tokenisation?

    • Tokenisation refers to the replacement of credit and debit card details with an alternative code called a ‘token’.
    • This token is unique for a combination of card, token requestor (the entity that accepts a request from the customer for tokenisation of a card and passes it on to the card network to issue a token) and the device.

    Benefits of Tokenization

    • Transaction safety: Tokenization reduces the chances of fraud arising from sharing card details.
    • Easy payments: The token is used to perform contactless card transactions at point-of-sale (PoS) terminals and QR code payments.
    • Data storage: Only card networks and card-issuing banks will have access to and can store any card data.

    How are the transactions currently processed?

    • There are many players involved in processing one card transaction today:
    1. Merchant
    2. Payment aggregator
    3. Issuing bank
    4. Card network
    • When a transaction happens on a merchant platform, the data is sent to the payment aggregator (PA).
    • The PA next sends the details to either the issuing bank or the card network.
    • Then issuing bank sends an OTP and the transaction flows back.

    Which companies dominate card transactions in India?

    Is the industry ready to implement this?

    • Not fully, that is why the RBI had to extend the deadline.
    • The industry currently can convert CoF into a tokenized number. However, the readiness to process the token is negligible.
    • About 90% of banks are ready with provisioning of token on Visa. Only 25-30% banks are ready on Mastercard.

    Impact on businesses

    If the industry isn’t ready, several business models would be impacted.

    • E-mandates (recurring payments) will stand ineffective from 1 July.
    • Card EMIs account for 25% of online e-commerce sales. That option will no longer be available.
    • Cashbacks/discount offers by banks will be impacted, too.
    • A user may not be able to use Mastercard saved cards on a merchant platform to make a transaction and will have to enter the card details every time a transaction is made.
    • This could be the same for some Visa cards.

    Way forward

    • The new system is a much bigger disruption to the way digital payments will henceforth be processed.
    • Integration of systems and the ability to process is one part.
    • The industry also needs to test the performance and success rate of the tokenization solution.

     

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