Sim Card Dealer Verification Mandated : Ashwini Vaishnaw’s Directive

• ByStartupStory     |    August 19, 2023

To counter digital fraud, the government has introduced measures requiring mandatory verification of SIM card dealers and discontinuing the issuance of bulk connections, announced Union Minister Ashwini Vaishnaw on Thursday.

Initially, the minister had announced that police verification of SIM card dealers would be mandatory. He later clarified that telecom operators would conduct the verification of SIM card dealers and that a penalty of Rs 10 lakh would be imposed on violators.

Additionally, to prevent misuse of printed Aadhaar, the government has mandated the collection of demographic details by scanning the QR code on printed Aadhaar cards. However, the minister clarified that Aadhaar is not obligatory for obtaining a SIM card.

“Indisputable verification of SIM dealers will be mandatory to curb fraud. A penalty of Rs 10 lakh will be imposed on dealers found violating norms,” Vaishnaw said.

The telecom operators will undertake the verification process, requiring business owners’ details and related documents to be submitted before appointing a dealer. Previously, such detailed documentation for dealers was not specified in the regulations.

The Department of Telecommunications (DoT) shared that facial-based biometric authentication is now permissible in addition to thumb impression and iris-based authentication in Aadhaar e-KYC processes.

“In the event of the disconnection of a mobile number, it will not be allocated to any other new customer until the expiration of 90 days. A subscriber has to undertake complete KYC for replacement of his SIM and there will be bar of 24 hours on outgoing and incoming SMS facilities,” the statement said

The verification of point of sale (PoS) will be the responsibility of telecom operators to eliminate rogue PoS operators who engage in fraudulent activities by issuing SIM cards to unauthorized individuals. A written agreement between the PoS and licensees is mandatory. Any illegal activities by a POS will result in termination and blacklisting for three years.

All existing PoS will be registered under this process by licensees within 12 months.

The DoT has also halted the provision of bulk connections and will introduce a new concept of business connections. In addition to business KYC, KYC for the individual receiving the SIM card handover will also be conducted.

“Besides KYC of businesses, KYC of the person taking over SIM will also be done,” Vaishnaw said.

The government’s crackdown on SIM card-related digital fraud has led to the disconnection of 52 lakh mobile connections, the blacklisting of 67,000 dealers, and the registration of 300 FIRs against SIM card dealers since May 2023. WhatsApp also blocked approximately 66,000 accounts engaged in fraudulent activities.

Besides, “About 8 lakh bank wallet accounts used by fraudsters have been frozen. Out of 7.5 lakh complaints about stolen or lost mobile handsets, 3 lakh mobile handsets have been traced and returned to their owners”, Vaishnaw said.

Official data shows that around 17,000 mobile handsets have been blocked, and out of approximately 18 lakh complaints regarding fraudulently registered mobile connections, 9.26 lakh have been resolved.

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