Starting today, December 1, 2023, the Department of Telecommunications (DoT) has put in place new regulations for SIM cards. These regulations require customers to update their KYC when purchasing a new SIM card, to have their SIM card dealers verified, and have abolished the provision for bulk connections. The government has implemented these new rules to combat online financial fraud.
New KYC rules for customers on purchase of new SIM cards
The new regulations require all individuals to undergo the digital Know Your Customer (KYC) process. If a customer is purchasing new SIMs or applying for a fresh one on the existing number, they have to provide the necessary demographic details. This comes under KYC reform, where the details will be captured by scanning the QR code of the printed AADHAR card.
In the case of SIM replacement, the subscriber needs to complete the KYC process, and there is a bar of 24 hours on outgoing and incoming SMS facilities.
The government also informed that a new mobile number can only be allocated to a customer after 90 days of it being disconnected by the previous user.
No more bulk purchases of SIM cards
To prevent digital scams, the government has decided to discontinue issuing bulk SIM card connections. Instead, DoT has introduced business connections, under which organisations need to appoint an authorised signatory to provide necessary documents to the telecom operator if they want to buy SIM cards in bulk for their employees. Individuals can still buy up to nine SIM cards with a single ID proof.
Mandatory verification for dealers
Under the new rules, all telecom operators are now required to register their franchises, PoS agents, and distributors. Further, they will have to undergo verification. Failure to comply will result in a fine of ₹10 lakhs. Point-of-Sale (PoS) agents must register themselves through a written agreement with licensees. Existing PoS agents have a 12-month window to align with the new registration process specified by licensees.
This measure aims to eliminate rogue PoS agents who engage in fraudulent practices, such as issuing SIM cards to antisocial or anti-national elements. The government has instructed that any existing PoS agents engaging in illegal activities will face termination and a three-year blacklist.
New KYC rules for customers on purchase of new SIM cards
The new regulations require all individuals to undergo the digital Know Your Customer (KYC) process. If a customer is purchasing new SIMs or applying for a fresh one on the existing number, they have to provide the necessary demographic details. This comes under KYC reform, where the details will be captured by scanning the QR code of the printed AADHAR card.
In the case of SIM replacement, the subscriber needs to complete the KYC process, and there is a bar of 24 hours on outgoing and incoming SMS facilities.
The government also informed that a new mobile number can only be allocated to a customer after 90 days of it being disconnected by the previous user.
No more bulk purchases of SIM cards
To prevent digital scams, the government has decided to discontinue issuing bulk SIM card connections. Instead, DoT has introduced business connections, under which organisations need to appoint an authorised signatory to provide necessary documents to the telecom operator if they want to buy SIM cards in bulk for their employees. Individuals can still buy up to nine SIM cards with a single ID proof.
Mandatory verification for dealers
Under the new rules, all telecom operators are now required to register their franchises, PoS agents, and distributors. Further, they will have to undergo verification. Failure to comply will result in a fine of ₹10 lakhs. Point-of-Sale (PoS) agents must register themselves through a written agreement with licensees. Existing PoS agents have a 12-month window to align with the new registration process specified by licensees.
This measure aims to eliminate rogue PoS agents who engage in fraudulent practices, such as issuing SIM cards to antisocial or anti-national elements. The government has instructed that any existing PoS agents engaging in illegal activities will face termination and a three-year blacklist.