You can get SIM cards without paper-based KYC from tomorrow
What's the story
The Department of Telecommunications (DoT) has announced a significant change for telecom companies and their customers.
Per DoT's instructions, telecom companies need to end paper-based physical verification for SIM card sales.
Starting January 1, the Know Your Customer (KYC) verification process for purchasing SIM cards will be entirely digital.
This means that customers will only need to show their photo ID for digital verification, making the process easier, more convenient, and cost-effective for everyone involved.
Details
Some providers have already switched to digital KYC
The DoT's notification explains, "Considering various amendment/changes made in the existing KYC framework from time to time, it has been decided that the use of paper-based KYC process, as envisaged in instructions, dated 09.08.2012, shall be discontinued with effect from 1.1.2024."
While some providers have already switched to digital methods for SIM card applications, the paper-based option remained available until now.
The latest move will help lower customer acquisition costs for telecom companies and prevent SIM-related frauds as well.
Scenario
Tightening verification rules to curb frauds
The paper-based KYC verification process requires customers to fill out a form, attach photos, and provide identity and address proof documents.
To combat fraud, the DoT has tightened rules for both customers and point of sale (PoS) entities.
Fraudsters often collaborated with PoS entities to obtain mobile connections, which were then misused for criminal activities.
By transitioning to a fully digital KYC process, security will be enhanced and the process of getting a mobile phone connection will become more streamlined.