New Delhi: In a major relief to millions of mobile users who want to take new mobile connection or want to change their plan from prepaid to postpaid or vice-versa, the department of telecom Tuesday notified new simplified know-your-customer (KYC) rules that will make it much easier for both consumers and telecom companies to comply with the regulations by using Aadhaar and OTP-based e-KYC.
Most important among them is instant activation of a new mobile number through Aadhaar based KYC which was discontinued following a Supreme Court judgement. In September 2018, the Supreme Court had ruled that forcing people to link their Aadhaar with mobile and bank account was unconstitutional.
Though later the government amended three laws to allow voluntary use of Aadhaar in KYC for opening bank accounts and for getting new mobile connections but Aadhaar based KYC for instant activation of the new number was not permitted.
Officials said under the earlier system, a subscriber had to undergo KYC process which entailed a visit to the Point of Sale (PoS) along with the original documents of identity and address as proof for obtaining a new mobile connection or conversion of mobile connection from Prepaid to Postpaid or vice-versa.
It said OTP based online delivery of services was the new norm and the contactless process needed to be promoted during the Covid era. However, the government has made it compulsory for telecom companies to obtain customer’s consent for obtaining his or her demographic details from the UIDAI for e-KYC purposes.
Aadhaar based e-KYC for new mobile connection
In order to implement the new guidelines announced last week, the department of telecom has re-introduced Aadhaar based e-KYC for obtaining new mobile connections. Telecom Service Providers will be charged Rs 1 per customer authentication by the UIDAI.
According to officials, it will be a complete paperless and digital process wherein the demographic details along with a picture of the customer is received online by the Telecom Service Providers from the UIDAI.
Self-KYC for new mobile connection
In this process, the issuing of mobile connections to the customers is done through an App or Portal based online process wherein a customer can apply for a mobile connection from his office or residence.
And the new SIM will be delivered to the customer at the doorstep using documents electronically verified by UIDAI or DigiLocker.
OTP-based plan change
The government also allowed telecom companies to use OTP based conversion for changing the plans from prepaid to postpaid and vice-versa.
In this method, a customer will be able to convert his plan through an OTP based authentication and he will not be required to visit the service provider’s point of sale or service centre for this purpose.
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