The Department of Telecom had proposed changes to cyber security rules aimed at reducing fraudulent activities associated with mobile phone numbers. According to the draft cyber security rules published on June 24, a new platform for phone number validation was intended to be established. This platform would also include entities, such as banks, that utilise phone numbers for customer identification during transactions, like UPI transactions. The proposed mechanism was to involve a "MNV platform," which would allow authorised entities and licensees to verify whether a mobile number used by enterprises or users was present in the database of a sanctioned entity or licensee.
The draft introduced a classification for entities employing phone numbers for customer identification or transactions, referring to them ascharges ‘telecommunication identifier user entities’ (TIUE).
New rule suggested a fee
Additionally, the new rule suggested a fee of Rs 1.5 per request for status validation of a mobile number within the telecom database operated by an entity authorised by the central or state governments. Other entities would reportedly need to pay Rs 3 for mobile number validation following the amendments.
While it's still uncertain who will ultimately pay the fee for mobile number verification, there's a strong possibility that users may end up footing the bill.
The Department of Telecom had invited feedback from relevant parties on the draft within 30 days of its release. The new regulations were expected to empower government-authorised agencies and law enforcement to gather transaction details of individuals from non-telecom entities as well.
Already initiated a pilot project
Sources indicated that a bank had already initiated a pilot project to assess the new mechanism, allowing it to flag numbers involved in fraudulent transactions. It was noted that any flagged number would be deactivated for 90 days, with its history automatically erased after this period, ensuring that any individual who acquires the same number post-deactivation would not be adversely affected.