The Telecom Regulatory Authority of India (TRAI) has issued the Telecommunication Tariff (Seventy Second Amendment) Order, 2026 and the Reporting System on Accounting Separation (Amendment) Regulations, 2026, introducing significant changes to the framework governing financial disincentives for telecom service providers, according to an official statement from the Ministry of Communications dated March 24, 2026.
The amendments follow a consultation process initiated on October 16, 2025, during which draft proposals were made public. TRAI received eight stakeholder comments on each draft before finalising the regulations.
Graded Penalty System Introduced
The revised provisions focus on strengthening compliance through a more structured penalty regime. Key measures include the introduction of a graded system of financial disincentives, enabling penalties to escalate based on the nature and recurrence of non-compliance.
Additionally, TRAI has prescribed a ceiling on the total amount of financial disincentives that may be imposed.
In a move aimed at ensuring timely adherence, the amendments also provide for the imposition of interest on delayed or non-payment of penalties.
"The amendments contain provisions for imposing the financial disincentives (i) in a graded manner to ensure compliance with regulatory provisions; (ii) revision in amount of financial disincentive prescribing a ceiling on the total financial disincentive amount; (iii) imposition of interest on delayed/non-payments of financial disincentives," the official release from the Ministry of Communications said.
Updates to Existing Regulations
The changes update existing provisions under the Telecommunication Tariff Order, 1999 and the Reporting System on Accounting Separation Regulations, 2016.
The amendments are expected to bring more clarity and consistency to enforcement while discouraging delays in compliance.
