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Despite SC verdict, telcos using Aadhaar-based KYC for issuing SIMs

Despite SC verdict, telcos using Aadhaar-based KYC for issuing SIMs

Oct 26, 2018
12:37 pm

What's the story

Almost a month after the Supreme Court ruled that private companies could not ask for Aadhaar details, it has been found that several leading telcos are still using Aadhaar-based eKYC for issuing mobile SIM cards. Interestingly, senior Department of Telecom (DoT) officials said that they were "aware" of the issue, and were working towards a solution. Here are the details.

Details

Telcos won't relent till DoT issues explicit instructions

Speaking to TOI, several senior executives from leading telcos confirmed that they were still using Aadhaar-based KYC for issuing SIM cards, owing to it being user-friendly, convenient and fast. They also told the publication that they would continue doing so, unless the Department of Telecommunications (DoT) explicitly issued instructions asking telcos to stop using Aadhaar for KYC.

Quote

COAI Director General clarifies telcos' stance

"Telecom operators always with instructions and regulations passed by DoT, and we will adhere to the Supreme Court's verdict. We shall await further orders and instructions from the DoT," said Rajan Mathews, Director General of industry body Cellular Operators Association of India (COAI).

UIDAI

What the UIDAI thinks of the situation

Commenting on the situation, a senior official at the Unique Identity Authority of India (UIDAI) said that the matter must be dealt with "immediately". Earlier in October, UIDAI had written to telcos reminding them that Aadhaar-based KYC could not be used, and had demanded a plan from telcos detailing the switch to alternative modes of KYC. It had warned of consequences for non-compliance.

DoT

DoT will issue prohibitionary instructions fairly soon

Meanwhile, DoT officials said that they were aware of Aadhaar-based KYC still being used, and that instructions prohibiting the practice would be issued fairly soon. Officials, who are currently studying the SC verdict, added that they would also suggest alternative KYC methods, but telcos would have to be given a 'reasonable' amount of time to make the switch.

Alternatives

What we know about alternative KYC methods

One such alternative was recently proposed by the government. The proposed KYC process would involve taking a live, geo-tagged and time-stamped photo of the applicant, along with a photo of the applicant's ID card - be it PAN, Voter ID, driving license or others. Once done, the SIM card agent would be authenticated via OTP, and SIM cards would be issued.