To curb the increasing cases of cyber fraud in India, the Department of Telecommunications (DoT) has implemented new cyber security rules. These rules will not only apply to major telecom companies like Airtel, Jio, BSNL and Vi (Vodafone Idea), but will also impact the financial and insurance sectors related to them. However, some technology experts have expressed concerns that bringing non-telecom companies under the ambit of DoT could pose a challenge to user privacy.
DoT’s new step
According to a report in Economic Times Telecom, DoT officials have clarified that these new rules are aimed at integrating telecom operators with banks, insurance companies and other financial institutions. DoT also said that its regulatory authority is limited only to licensed telecom operators and these new rules are not intended to regulate unlicensed companies.
What is Mobile Number Verification Platform (MNV)?
The most important part of these new rules is the Mobile Number Verification (MNV) platform, which DoT is preparing to launch soon. The purpose of this platform is to verify whether the mobile number actually belongs to the person whose name is recorded in the KYC (Know Your Customer) records. Banks, fintech companies and insurance institutions will be able to verify customers’ mobile numbers while opening new accounts through this platform. This will ensure that the mobile number linked to the bank account or insurance policy belongs to the right person, thereby preventing fraud and cyber fraud.
How will this platform prevent cyber fraud?
Until now, there was no legal system in India that allowed banks or institutions to verify whether a mobile number actually belonged to the account holder. The new MNV platform of the Department of Telecommunications will fill this gap. Under this, banks and other institutions will be able to directly verify the validity of mobile numbers from telecom companies. This is expected to significantly reduce incidents of fraudulent transactions, fake SIM cards and opening of fake accounts.
Which companies will not be subject to these rules?
The Department of Telecommunications has clarified that these rules will not apply to e-commerce, food delivery or other online business platforms. These will apply only to entities directly involved in telecommunication networks and financial services.