The Department of Telecommunications (DoT) Extends Deadline for New SIM Card Sale Rules 

The Department of Telecommunications (DoT) in India has granted a two-month extension to telecom operators to comply with the revised SIM card sale rules announced by the government in August. Initially scheduled for enforcement on October 1, these rules now will take effect on December 1, allowing telcos more time to adjust their IT systems. The new regulations require telcos to register SIM card sellers and complete their KYC (Know Your Customer) procedures before onboarding them into the system. Moreover, these rules aim to halt the sale of bulk SIM cards, which have been misused for various illegal activities. 

The government’s decision to implement these changes was driven by a desire to combat the distribution of fake SIM cards and financial fraud. The previous system allowed sellers to issue SIM cards without proper verification, leading to concerns about security and illegal activities. To ensure compliance, all existing point of sale (PoS) dealers must complete their registration by November 30, 2024, as specified in the government’s new rules. This process necessitates a written agreement between the SIM card seller and the telcos, emphasizing the importance of transparent transactions and accountability. 

According to the updated rules, telcos will face penalties of up to Rs 10 lakh if they permit unregistered SIM card sellers to operate after November 30. Additionally, sellers engaged in illegal activities will be terminated and blacklisted for a three-year period. 

Recognizing that the bulk sale of SIM cards has facilitated a wide range of fraudulent activities, the government has introduced a new system called Business Connections. This system seeks to address the issue of illegitimate bulk connections and ensure that business connections are issued only after stringent registration procedures have been completed. This includes providing GST numbers, PAN cards, and individual KYC information for employees who will use these numbers. 

With over one million SIM card sellers in the country, this initiative is critical to curbing the misuse of bulk SIM cards, a common practice among fraudulent actors. Fraudsters use these bulk SIM cards in devices known as SIM boxes, enabling them to generate automated calls on a single connection. Following these fraudulent calls, the SIM cards are deactivated. 

As part of this effort, the government has already blacklisted nearly 70,000 dealers engaged in fraudulent SIM card activities and filed 300 FIRs (First Information Reports) against individuals involved in cyber frauds. The new rules aim to maintain the integrity of the telecom industry and protect consumers from illegal activities related to SIM card sales. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Supreme Court Ruling Boosts Indus Towers Shares by Over 3%
Telecom Industry

Supreme Court Ruling Boosts Indus Towers Shares by Over 3%

Indus Towers’ shares rose by over 3% after a significant Supreme Court ruling in the company’s favor. The court granted telecom and tower companies, including Indus Towers, Vodafone, and Bharti Airtel, the right to claim Central Value-Added Tax (Cenvat) credits on duties paid for key infrastructure components, such as tower parts and shelters. This decision […]

Read More
Vodafone Executives Exit Indus Towers Board Following Bharti Airtel's Majority Stake Acquisition
Telecom Industry

Vodafone Executives Exit Indus Towers Board Following Bharti Airtel’s Majority Stake Acquisition

Executives from the UK’s Vodafone Group PLC, who served as non-executive directors on the board of Indus Towers, have resigned following Bharti Airtel’s increase in its stake to over 50 percent in the tower company. With the increased stake, Indus Towers is set to become a subsidiary of Bharti Airtel.  Vodafone Executives Step Down from […]

Read More
Delay in Vi’s ₹25,000 Crore Funding Worsens Financial Struggles
Telecom Industry

Delay in Vi’s ₹25,000 Crore Funding Worsens Financial Struggles

Vodafone Idea (Vi) is grappling with worsening financial challenges as its ₹25,000 crore debt-funding plan faces significant delays, casting doubt on its ability to achieve a turnaround. The setback follows the Supreme Court’s rejection of Vi’s curative petition to recalculate its adjusted gross revenue (AGR) dues, which has further strained the company’s financial outlook. Analysts […]

Read More