The department of telecommunications (DoT) has given an additional two months’ time to telecom operators for complying with the new SIM card sale rules. These rules were notified by the government in August 2023. The new rules will now kick in from December 1. Earlier, the deadline to comply with the rules was October 1.
Salient features of new rules
- The new rules required telcos to register SIM card sellers and conduct their proper KYC before onboarding them into the system.
- The Department of Telecommunications (DoT) had discontinued the provision of bulk connections.
- Under the KYC reforms, the demographic details of the customer will be captured by scanning the QR code of the printed Aadhaar in case of taking new SIMs or applying for a fresh SIM on an existing number.
- Telcos will be penalised to the tune of Rs 10 lakh if they allow SIM card sellers to operate without registration after November 30.
- For all the existing point of sales (PoS) dealers, the registration should be completed by November 30, 2024.
- With regard to the registration, the process will mandate a written agreement between the SIM card seller and the telcos.
Background
- The new rules were introduced to curb the menace of fake SIM cards and financial fraud.
- It was found that many sellers were issuing SIM cards without proper verfication and were themselves indulged in such illegal activities.
- The sellers indulging in illegal activities will be terminated and blacklisted for a period of three years.
- Through bulk SIM cards, currently fraudsters indulge in making errant calls using a device called SIM box that is used for generating automated calls on a single connection. Through this device, after making fraud calls, the SIM cards get deactivated.
