Tech Telecom

Finally, from December 1 st, the new rules on SIM cards laid down by the Government in August will enter into force. The new rules will bring in a number of changes, e.g. banning bulk sale of SIM cards, compulsory registration by PoS franchisees, agents and distributors for telecommunication operators as well as police verifications on SIM network providers to name but a few.

In order to combat scams and fraud involving bogus SIM cards, these rules shall be laid down. In order to curb rising instances of fraud, the Department of Telecommunications is introducing new rules on SIM card purchase and sale that shall apply throughout the country as from December 1. The government has taken these steps considering the severity of scams caused by fake SIMs and penalties for breaking these rules include fines and imprisonment.

First of all, the following procedure for registering: Under the new rules, POS agents are to enter into an agreement with a telecommunications service provider or concessionaire in order to discourage them from taking part in unlawful activities. A fine of 10 lac would be imposed on PoS agents who engage in an illegal act, and their association with the telecommunications service provider could be terminated for a period of three years.

Sellers shall have a period of 12 months from 1 December to be in compliance with the new registration requirements. The move is expected to help the government identify, blacklist and remove rogue sellers from the telcos’ systems.

In line with the new rules, for buying a new SIM card or applying for a new one on your existing phone number, it will be compulsory to have an indication of age. A scanned QR code on the Aadhar Card of the person who is taking his SIM card will capture the required information.

In addition, it is important to note that the new customer’s phone number will be allocated after 90 days from the time of termination by the previous user. The rules also point out that subscribers must go through an entire KYC verification process with respect to SIM replacement, and there will be a 24 hour period in which SMS services are not available for incoming or outgoing.

In order to combat digital fraud, the government has closed down wholesale sales of SIM cards. In the light of Know Your Customer and Know Your Kinship norms applicable to each owner of a Sim Card, connections or SIMs may however be allowed with regard to businesses, corporations or events.

In the interim, customers will be able to acquire up to 9 sim cards in one ID card.

In August, 2015, Indian Minister of State Ashwini Vaishnaw spoke about the misuse of bulk SIM cards and stated that earlier people used to purchase them in bulk. There was a provision for this to buy sim cards in bulk. This provision has been decided not to be continued. Instead, we’ll bring to the table a set of provisions on business connections that will help prevent fraudulent calls,”