DoT to eliminate physical KYC

The Department of Telecommunications (DoT) is eliminating the expensive and time-consuming practice of physically validating client details prior to selling mobile connections on January 1, 2024, which is sure to cheer up India's telcos as per a report by ET. Reducing SIM fraud is another goal of the action.

"Given the numerous modifications and adjustments made to the current KYC (Know Your Customer) framework over time, it has been determined that the implementation of paper-based KYC, as outlined in the 09.08.2012 instructions, will be discontinued as of 1.1.2024." DoT stated in its Tuesday notification.

According to the report, Industry leaders claimed that switching from paper-based KYC to digital enrollment for mobile users will reduce customer acquisition expenses for telecoms and aid in the government's efforts to prevent SIM fraud.

Mobile users had to fill out customer acquisition forms (CAFs), paste photos, and attach proof of identification (Pol) and proof of address (PoA) documents in order to be enrolled in the paper-based customer verification system.

In an attempt to combat fraud and phishing, the DoT revised regulations in August 2023 about the requirements for verification for consumers requesting mobile phone numbers and for point of sale (PoS) organizations designated by telecoms. The statement went on to state that the government had become aware of instances in which fraudulent individuals, working with Point of Sale (PoS) organizations, had gained mobile connections and were abusing them to perpetrate fraud and cybercrime.

The Indian government had amended the laws pertaining to SIM card issues in the nation, keeping consumer safety in mind. The effective date of the amendments was originally scheduled for October 1, 2023, however it was moved ahead by two months. The amount of cybercrimes that occur in the nation ought to significantly decrease now that the new regulations are in place. To guarantee the safety of the average citizen, the government has implemented these new regulations. The updated SIM card regulations address bulk issuance, who can issue new SIMs, and other topics. New regulations governing SIM card issuance took effect on December 1, 2023.

The updated regulations recognize the need to gather additional information about the person buying the SIM card. If necessary, this would assist the police in finding the SIM’s linked individual.