Encrypting sensitive information

In the documentation, it was mentioned that sensitive data should be encrypted and not be passed directly. But when I tested milestone1 APIs, they were working fine without the encrypted data and gave error with encrypted one. Does the encryption data thing is for production environment only or I am missing on something? Someone please clarify on this.

@sunchu kindly look.

Any updates on this?
@Ramandeep1 @sunchu