The Indian government has intensified its fight against fraud and cybercrime in the telecom sector by disconnecting more than 85 lakh mobile connections, a significant step towards enhancing security and transparency. The Department of Telecommunications (DoT) revealed that 78.33 lakh of these connections were linked to fake documents, while 6.78 lakh were associated with cybercriminal activities. This decisive action follows the deployment of an advanced AI-based tool developed by the DoT to identify and address irregularities.

Strengthening KYC Framework

To bolster the issuance process for mobile connections, the DoT has introduced stringent guidelines for telecom service providers. These new regulations mandate the comprehensive registration and verification of all Points of Sale (PoS), including franchisees, distributors, and agents. The focus is on ensuring secure and transparent customer enrolment, thereby reducing the risk of fraudulent practices.

Key measures include:

• Biometric Verification: PoS must undergo identity verification through biometrics.
• Address Verification: Physical inspections of the PoS's business premises and local residence are mandatory.
• Police Verification: This is required in sensitive regions such as Jammu & Kashmir, Assam, and the North Eastern License Service Areas (LSAs).

Penalties for Non-Compliance

Telecom companies are required to establish agreements with PoS that clearly define their responsibilities and outline penalties for violations. These penalties include:

• Termination of agreements in cases of non-compliance.
• Blacklisting PoS found involved in fraudulent activities.
• Re-verification of all mobile subscribers enrolled through blacklisted PoS.

Moreover, PoS found enrolling customers without proper registration beyond January 31, 2025, will face hefty fines of ₹10 lakh per instance.

Overhaul of Existing Processes

The DoT has also revamped its guidelines to improve the Subscriber Identity Module (SIM) activation and replacement processes:

Elimination of Paper-Based KYC: Effective January 1, 2024, the traditional paper-based Know Your Customer (KYC) system has been replaced with digital methods.
Business Connection Framework: The bulk connections framework has been discontinued. Now, every end-user of business connections must undergo individual KYC verification before activation.

Stringent SIM Replacement Rules: A more robust process has been implemented to address SIM swap and replacement requests, preventing misuse.
Ministerial Statement

Dr. Pemmasani Chandra Sekhar, the Minister of State for Communications and Rural Development, highlighted these significant measures in a recent Lok Sabha session. He emphasized that the government remains committed to ensuring a secure and transparent telecom ecosystem, which is vital for safeguarding users and deterring cybercrime.