In a recent announcement, Indian telecom giants including Jio and Airtel expressed concerns over new regulations set by TRAI, banning OTPs. The new regulations will come into force on November 1 and will require telecommunications companies to ensure traceability of all transactional and service messages sent by e-commerce platforms, banks and other financial institutions.

The TRAI rules further require telecom companies to block any messages with irregular sending chain, which could disrupt the transmission of OTPs and other important alerts.

Telecoms request extension to avoid disruptions

Initially, it was TRAI that ordered telecom operators to track messages from banks and financial institutions from August 2023. But now, as the November deadline approaches, telecom companies are ready to comply , but report that many principal entities (PEs) and telemarketers are not ready for the transition.

The delay in compliance led PEs to request an additional 2 months, during which they could update their systems to avoid interruptions in message delivery. It is further stated that if compliance is granted, this extension could help prevent widespread OTP and transaction messages from disrupting users across the country.

Government Anti-Scam Efforts: Spoofed Call Prevention System

Moreover, to the new regulatory measures, the Union Communications Minister Jyotiraditya Scindia recently introduced the international spoofed incoming call prevention system.
The new system was designed to protect Indian subscribers against fraudulent calls disguised as Indian numbers (+91) but originating from abroad.

Cybercriminals are exploiting this flaw to launch scams by posing as government officials and spreading panic among unsuspecting victims.

Growing threat of digital scams

TRAI’s new anti-scam initiatives come amid an alarming rise in sophisticated cybercrime, which includes scams involving spoofed international calls.

In these schemes, fraudsters typically pose as law enforcement officials, intimidating victims via video calls and falsely claiming to be involved in criminal activity. In their fear, victims often comply with the scammers’ demands. TRAI’s recent identification of such scams highlights the growing need for strong regulations to protect consumers in an increasingly digital world.

OTP regulations: impact on consumers

With these regulatory changes, Indian telecom subscribers may face temporary disruptions in the delivery of OTP and other transactional messages which will begin from November 1 if the requested extension is not granted.

Additionally, the TRAI rules and the government’s new measures are important steps in securing digital communications, although they may temporarily impact the convenience of receiving critical messages.

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