In a recent announcement, Indian telecom giants, including Jio and Airtel, have expressed their concerns over new regulations set by TRAI, for barring OTPs. The new regulation will be implemented on November 1, and these rules mandate that the telecom companies will ensure traceability for all transactional and service messages sent by e-commerce platforms, banks and other financial institutions.
Telecoms call for an extension to avoid disruption
Initially, it was TRAI which directed the telecom operators to track messages from banks and financial institutions as early as August 2023. But now, as the November deadline approaches, the telecom companies are set to comply but report that many Principal Entities (PEs) and telemarketers are not ready for the transition.
The delay in compliance has led the PEs to request an additional 2 months, during which they could update their systems to avoid interruptions in message delivery. It is further stated that if compliance is granted, this extension could help prevent widespread OTP and transaction messages from disrupting users across the country.
Government’s anti-scam efforts: Spoofed call prevention system
Furthermore, to the new regulatory measures, Union Minister of Communications Jyotiraditya Scindia recently further introduced the International Incoming Spoofed Calls Prevention System.
The new system has been designed to protect Indian subscribers from fraudulent calls disguised with Indian numbers (+91) but originating from abroad.
Cybercriminals have been exploiting this loophole to launch scams by impersonating government officials and creating panic among unsuspecting victims.
Rising threat of digital scams
The new anti-scam initiatives from TRAI come amid an alarming rise in sophisticated cybercrimes, that include scams which are involve international spoofed calls.
In these schemes, fraudsters majorly pose as law enforcement officials, intimidating victims via video calls and falsely claiming involvement in criminal activities. In their fear, victims often comply with the scammers' demands. TRAI’s recent identification of such scams highlights the growing need for strict regulations to protect consumers in an increasingly digital world.
OTP regulatory: Impact on consumers
With these regulatory changes, Indian telecom subscribers may face temporary disruptions in OTP delivery and other transactional messages which will be starting from November 1 if the requested extension is not granted.
Furthermore, TRAI’s rules and the government’s new measures are significant steps in securing digital communication, even as they may temporarily impact the convenience of receiving critical messages.
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