Telecom Department issues orders to simplify KYC process for the sector

The Telecom Department on Tuesday issued a series of orders to simplify and digitse know your customer (KYC) process in the telecom sector for getting new mobile connection, conversion from prepaid to postpaid connection, among others.

Last week, Telecom Minister Ashwini Vaishnaw, while announcing the reforms for the telecom sector cleared by the Union Cabinet, had said that all KYC for mobile connections would be digitised.

"In a major step towards achieving this objective, the Department of Telecommunications, Ministry of Communications, Government of India, today issued a series of orders simplifying the KYC processes and thereby initiating the telecom reforms announced by the Cabinet..." the Ministry of Communications said in a release.

As per the new orders, Aadhaar-based e-KYC process has been reintroduced for issuing new mobile connections. Telecom service providers will be charged Re 1 per customer authentication by the UIDAI.

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"This is a complete paperless and digital process wherein the demographic details along with picture of the customer is received online by the telecom service providers (TSPs) from the UIDAI," it said.

Besides, a self-KYC process has also been introduced. Under it, the issuance of mobile connections to customers will be done through an app/portal-based online process. A customer can apply for mobile connection sitting at home/office and get the SIM card delivered at doorstep using documents electronically verified by UIDAI or DigiLocker.

The department has also introduced a process for OTP-based conversion of mobile connection from prepaid to postpaid and vice-versa. "The implementation of OTP based conversion process enables a subscriber to convert his mobile connection from prepaid to postpaid and vice-versa sitting at home/office via OTP based authentication," the ministry said.

The government said there was a need to promote contactless services in the COVID era for subscriber convenience and ease of doing business. "Customer consent has been made compulsory in case the Aadhaar is being used and demographic details are being obtained electronically from UIDAI," it said.

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