DoT unveils stricter rules for SIM card sales and usage
Department of Telecom

DoT unveils stricter rules for SIM card sales and usage

India strengthens SIM card regulations for enhanced security

Strengthening SIM card regulations

In a bid to enhance the security and regulation of SIM card sales and usage in India, the Department of Telecom (DoT) has introduced a series of new guidelines through two circulars—one targeting individual users and the other focusing on telecom companies like Airtel and Jio.

Of particular significance is the directive aimed at telecom companies, emphasizing the need for stringent Know Your Customer (KYC) checks on shops selling SIM cards. Telecom firms must now conduct comprehensive KYC of these shops, and any failure to do so will result in fines of Rs 10 lakh per shop. These rules will come into effect from October 1, 2023, with existing shops also required to comply with the new norms by September 30, 2024.

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Tightening control over Point of Sale (PoS)

The DoT directive further mandates that telecom licensees must register their Points of Sale (PoS) individually before allowing them to enroll customers. This move, driven by national security concerns, puts the onus on companies like Airtel and Jio to closely monitor the identity and operations of those selling their SIM cards.

In specific regions such as Assam, Kashmir, and the North East, telecom operators will need to initiate police verifications of shops before formalizing agreements and permitting them to sell new SIM cards. This additional layer of security aims to ensure that SIM cards are distributed through legitimate channels.

The new rules also impact consumers purchasing SIM cards, requiring a comprehensive KYC process for re-issuing SIM cards in cases of damage or loss, akin to the process for obtaining a new SIM. Even existing customers seeking replacements will need to undergo this verification process, reaffirming their identity and details.

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Curbing misuse of bulk SIM cards

To combat spam messaging and cyber fraud, the DoT has introduced measures to prevent the misuse of bulk-purchased SIM cards. Telecom companies must now conduct rigorous KYC checks before facilitating bulk SIM card sales, making it an exception rather than a default practice.

These regulations signify a proactive effort by the DoT to bolster the security and accountability of SIM card sales and usage, aligning with India's broader goals of enhancing telecommunications regulation and safeguarding national interests.

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