India eases KYC rules to boost telecom reforms

India eases KYC rules to boost telecom reforms

India's Department of Telecommunications (DoT) has now made it simpler for consumers to get a new mobile connection with an online KYC (Know Your Customer) process and the option to get the SIM delivered at home.

The DoT on Tuesday issued a series of orders to simplify the KYC processes, which it said was in line with initiating the telecom reforms announced by the Union Cabinet last week. (The Cabinet had last week approved a slew of measures for its cash-strapped telecom sector including a four-year moratorium on airwaves payments due to the government and 100% FDI through automatic route in the sector).

“Online service delivery has become an acceptable norm in the recent past and most of the customer services are being offered through the internet with OTP authentication. Contactless services in the COVID-19 era need to be promoted for subscriber convenience and also for ease of doing business,” a statement from DoT said.

The new policy by DoT will enable the delivery of SIM cards at the doorstep of customers. According to DoT, customer consent has been made compulsory in case the Aadhaar is being used and demographic details are being obtained electronically from the Unique Identification Authority of India (UIDAI). Aadhaar is a 12 digit individual identification number issued by UIDAI on behalf of the Government of India.

These reforms include -Aadhaar based e-KYC; self-KYC and OTP (one-time-password)-based conversion of mobile connection from Prepaid to Postpaid and vice-versa.

Presently, a subscriber has to undergo the KYC process which entails a visit to the Point of Sale along with the original documents of identity and address as proof for obtaining a new mobile connection or conversion of mobile connection from Prepaid to Postpaid or vice-versa.

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.