The Department of Telecommunications (DoT) in India is set to eliminate the costly and time-consuming practice of physically validating client details for selling mobile connections, effective January 1, 2024. The move, detailed in a Tuesday notification from the DoT, aims to streamline the Know Your Customer (KYC) process and reduce SIM fraud. The decision discontinues the paper-based KYC implementation outlined in the 09.08.2012 instructions, aligning with the government’s push for digital enrollment for mobile users.
Industry leaders, cited in the report, believe that transitioning from paper-based KYC to digital enrollment will lower customer acquisition expenses for telecoms and contribute to the government’s efforts to combat SIM fraud. Previously, mobile users had to complete customer acquisition forms (CAFs), attach photos, and provide proof of identification (PoI) and proof of address (PoA) documents for enrollment in the paper-based customer verification system.
To enhance fraud prevention and address phishing concerns, the DoT revised regulations in August 2023, focusing on verification requirements for consumers requesting mobile phone numbers and for Point of Sale (PoS) organizations designated by telecoms. The government acknowledged instances of fraudulent individuals collaborating with PoS organizations to obtain mobile connections for illicit activities.
Amendments to the laws related to SIM card issues were introduced by the Indian government, prioritizing consumer safety. Originally scheduled for October 1, 2023, the effective date of these amendments was advanced by two months to December 1, 2023. The updated SIM card regulations, effective from December 1, 2023, address issues like bulk issuance, authorized entities for issuing new SIMs, and related matters.
Recognizing the necessity of gathering additional information about individuals purchasing SIM cards, the updated regulations aim to assist law enforcement in tracing the linked individual, reinforcing cybersecurity measures and enhancing consumer safety.
