The Department of Telecommunication (DoT) introduced new SIM card regulations.
In August, the Department of Telecommunication (DoT) introduced new SIM card regulations set to take effect on December 1st. These directives encompass a range of alterations, such as prohibiting bulk SIM card sales, mandating PoS franchisee registration, and enforcing police verification of SIM dealers. The primary objective behind these revisions is to eradicate online financial fraud and bolster scrutiny measures.
Rules for telecom agents
Beginning December 1st, sellers are granted a year to conform to the newly instituted registration criteria as per the recent regulations. This extended timeline is designed to facilitate the government in its mission to identify and expel individuals engaged in illicit activities from the system.
The regulations also demand that point-of-sale (PoS) agents forge agreements with telecom service providers, explicitly forbidding any participation in illegal endeavours. Breaching these terms could result in severe penalties including a hefty fine of ₹10 lakh and a three-year suspension of service.
New KYC rules
Upon purchase or application for a new SIM card, demographic information becomes mandatory. This information will be acquired through scanning the Aadhar card’s QR code belonging to the individual obtaining the SIM.
Transferring a mobile number to a new user is restricted for a period of 90 days post disconnection by the previous customer. Additionally, full completion of the KYC process is requisite for SIM replacement, alongside a 24-hour limit imposed on outgoing and incoming SMS services.
SIM bulk purchase rule
To combat digital fraud, the government has suspended the bulk sale of SIM cards, yet allowing exceptions for businesses, corporations, or events. However, all individual SIM card owners, including those for commercial purposes, must adhere to the know-your-customer (KYC) norms. Under the new guidelines, customers retain the option to purchase up to 9 SIM cards using a single ID card. Highlighting concerns about the misuse of bulk SIM cards, Union Minister Ashwini Vaishnav remarked in August, ‘Previously, individuals could purchase mobile SIM cards in bulk, but this provision has been terminated. Instead, a proper business connection provision will be introduced, aiming to curb fraudulent calls.’
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