No more bulk SIM cards as government steps in to curb fraud

Source: The post is based on the article “No more bulk SIM cards as government steps in to curb fraud”  published in The Hindu on 18th August 2023.

What is the News?

The Department of Telecommunications (DoT) has announced several steps to combat the issue of fraudulent SIM cards.

What are the steps announced by the government to combat the issue of fraudulent SIM cards?

Mandatory registration of SIM dealers: Telecom operators will do mandatory registration of franchisees, point of sale (PoS) agents and distributors. This will help in eliminating the rogue PoS who by fraudulent practices issue SIMs to anti-social/anti-national elements.

The PoS registration process includes indisputable verification by telcos.The process mandates-Written agreement between the PoS and the licensees. If a PoS indulges in any illegal activities, it will be terminated and blacklisted for a period of three years.

All the existing PoS will be registered as per this process by licensees within 12 months.

Bulk SIMs to companies discontinued: The facility to provide SIM connections in bulk to companies is being discontinued.

– The existing bulk system requires companies to preserve records of individual subscribers.

– Instead a “ new business” system is being put in place where each corporate subscriber has to undertake KYC (‘Know Your Customer’) when a SIM is being issued to them. 

– Physical Aadhaar printouts or cards provided as identity or address proof will also have to be verified by scanning the QR code to reduce fraud.

What are the other steps taken by the government?

Government of India has launched the Sanchar Saathi portal. The portal allows citizens to: 1) Check the connections registered on their names, 2) Report fraudulent or unrequired connections, 3) Block the mobile phones which are stolen/lost and 4) Check IMEI genuineness before buying a mobile phone.