As more people engage in online activities, many rely on mobile services for internet access. While digital connectivity is essential for growth, it's important to ensure users are protected. On Thursday, Shri Ashwini Vaishnaw, the Minister of Communications, Railways, Electronics, and IT, announced two reforms aimed at enhancing customer protection and accelerating digital transformation. The reforms currently introduced for KYC and POS Registration are a continuation of previous reforms introduced through the Sanchar Saathi portal, which has enabled India to combat cybercrimes and financial fraud effectively, according to the government.
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KYC Reforms
The first reform focuses on enhancing Know Your Customer (KYC) procedures. KYC is a vital process for uniquely identifying customers and ensuring their traceability before granting telecom services. Strengthening the existing KYC process is seen as a key tool in safeguarding telecom service subscribers from potential frauds, thereby bolstering public confidence in the digital ecosystem.
To combat the misuse of printed Aadhaar cards, demographic details will now be mandatorily captured by scanning the QR code of the printed Aadhaar. Furthermore, mobile numbers that have been disconnected will remain unallocated to new customers for a period of 90 days.
Subscribers seeking SIM replacement must complete the entire KYC process, and there will be a 24-hour outgoing and incoming SMS facility restriction.
In addition to thumb impression and iris-based authentication in the Aadhaar E-KYC process, facial biometric authentication has also been incorporated.
Moreover, the introduction of business connections will allow entities such as companies, organizations, trusts, and societies to obtain multiple mobile connections provided complete KYC of all end-users is carried out.
Activation of these SIMs will only occur after successful KYC verification of end-users and physical premises/address verification of the entity.
Also Read: Telecom Minister Urges Citizens to Not Pick Calls From Unknown Numbers
Point-of-Sale (POS) Registration Reforms
The second reform targets Point-of-Sale (POS) registrations. This reform mandates the mandatory registration of Franchisees, Agents, and Distributors (PoS) by Licensees, aimed at eliminating rogue PoS entities that engage in fraudulent practices such as issuing SIM cards to anti-social or anti-national elements.
The new process necessitates unequivocal verification of PoS by Licensees and mandates a written agreement between PoS and Licensees. Any PoS engaging in illegal activities will face termination and blacklisting for a duration of three years.
Within a year, all existing PoS entities will be required to register as per this new process, ensuring a more transparent and secure distribution of mobile services.
The combined impact of these reforms will significantly enhance the telecom sector's ability to identify and eliminate rogue PoS entities and further encourage ethical practices among legitimate PoS entities.
On this occasion, the government shared the impact of the Sanchar Saathi Portal.
Also Read: Sanchar Saathi Portal Launched by Union Minister Shri Ashwini Vaishnaw
Impact of Sanchar Saathi Portal
The communications ministry highlighted that the 'Sanchar Saathi' portal, launched on World Telecommunication Day (May 17, 2023), has emerged as a pivotal tool for protecting mobile users. This citizen-centric portal empowers mobile subscribers to identify mobile connections registered in their name, report fraudulent registrations, and report stolen/lost mobile handsets for blocking.
Through the 'Sanchar Saathi' portal and the ASTR tool, approximately 114 crore active mobile connections have been analyzed, yielding the following outcomes:
- Over 66 lakh suspected mobile connections detected
- More than 52 lakh mobile connections were disconnected due to failed re-verification
- Blacklisting of over 67,000 Points of Sale (PoS) entities
- Blocking of around 17,000 mobile handsets
- Registration of over 300 FIRs against more than 1,700 rogue PoS entities
- Blocking of more than 66,000 WhatsApp accounts used for fraudulent activities
- Freezing of approximately 8 lakh bank/wallet accounts used by fraudsters
- Resolution of 9.26 lakh complaints out of 18 lakh complaints about fraudulently registered mobile connections
- Tracing of 3 lakh mobile handsets out of 7.5 lakh complaints about stolen/lost devices
Also Read: DoT Disconnects 30,000 SIM Cards in Mumbai for Document Fraud: Report
In addition to these advancements, the Department of Telecommunications has identified and acted against 114 illegal telecom setups since January 2022, further underlining the government's commitment to safeguarding citizens' interests and fortifying the telecom sector against emerging threats.
According to the government, these transformative reforms and comprehensive measures ensure the highest level of safety, security, and trust within the telecommunications landscape, ensuring a secure and reliable communication environment for all citizens.
