The Department of Telecom (DoT) in India has introduced a new set of regulations aimed at strengthening the process of purchasing and activating SIM cards in the country. These regulations are presented in two separate circulars, with one directed towards individual SIM card users and the other targeting telecom companies like Airtel and Jio.
The primary focus of these new rules is to enhance the safety and security
The primary focus of these new rules is to enhance the safety and security of the SIM card procurement process. Of particular significance are provisions demanding more rigorous Know Your Customer (KYC) procedures for stores selling SIM cards.
Under the new regulations, telecom companies like Airtel and Jio are required to conduct comprehensive KYC checks on shops selling their SIM cards. Failure to comply with this requirement may result in a fine of Rs 10 lakh per shop. These rules are set to take effect from October 1, 2023, and existing shops selling SIM cards must adhere to the updated KYC norms by September 30, 2024.
Effectively, this mandates that companies such as Airtel and Jio closely monitor the entities selling their SIM cards and ensure strict adherence to KYC protocols.
Furthermore, the DoT has specified that in certain regions like Assam, Kashmir, and the North East, telecom operators must initiate police verification of shops before formalizing agreements for selling new SIM cards.
These regulations also impact consumers purchasing SIM cards. Even in cases of SIM card replacement due to damage or loss, individuals will be subjected to the same verification process as required for obtaining a new SIM card, including address and personal details re-verification.
To combat spam messaging and cyber fraud, the DoT’s rules aim to curb the misuse of bulk-purchased SIM cards. The new guidelines dictate that the bulk sale of SIM cards, especially for businesses and groups, will only occur after more stringent KYC verification. Bulk SIM card sales will be the exception rather than the norm, with default sales of bulk SIM cards banned under the new regulations.
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