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TELECOM REFORMS AND SIMPLIFIED KYC PROCESSES INTRODUCED

TELECOM REFORMS AND SIMPLIFIED KYC PROCESSES INTRODUCED

Context:

The Telecom Department has initiated telecom reforms and has simplified KYC processes.

About the Telecom Reforms:

  • In a major move to achieve this goal, the Department of Telecommunications, Ministry of Communications, Government of India issued a series of orders simplifying KYC processes and thus initiating the telecom reforms announced by Cabinet on 15.09.2021.

Current Procedure:

  • Currently, the subscriber must perform a KYC process that includes a visit to the Point of Sale and initial identification and address documents as proof of acquisition of a new mobile connection or conversion of a mobile connection from Prepaid to Postpaid or vice versa.

Important Points:

  • Online service delivery has become commonplace in the past and most customer services are provided online via OTP authentication.
  • Contactless services in the COVID era need to be promoted to make it easier for subscribers and easier to do business. Customer consent is made mandatory if Aadhaar is used and personal information is available electronically from UIDAI.

Accordingly, following the immediate implementation orders issued by the DoT to implement contactless, customer-centric and secured KYC processes:-

Aadhaar based e-KYC

  • The Aadhaar-based e-KYC process has been re-launched with the release of new mobile communications.
  • Telecom Service Providers will be charged Rs. 1 / - with customer confirmation by UIDAI.
  • This is a complete paperless and digital process where personal information and customer image are available online by the Telecom Service Provider (TSPs) from UIDAI.

Self-KYC:

  • In this process, the issuance of a mobile connection to customers is done through an online process based on the App / Portal where the customer applies for a mobile connection sitting at home/office and receives a SIM at their door using UIDAI or DigiLocker-certified documents.

OTP-based conversion of mobile connections from Prepaid to Postpaid and vice-versa

  • The implementation of the OTP-based conversion process enables the subscriber to switch his or her mobile connection from Prepaid to Postpaid and vice versa sitting at home/office with OTP-based authentication.

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