The government is setting up a mobile number verification (MNV) platform that will allow banks and fintech companies to check if a mobile number truly belongs to the account holder. This move not only bolsters fraud prevention efforts but also creates a fresh revenue stream for telecom operators, which will earn a fee each time a verification request is made.
How the Platform Works and Who Pays
Under the initiative, telcos will be mandated to onboard verification services and respond to requests from financial entities. While the final fee structure is still being decided, draft cybersecurity rules had suggested ₹1.5–3 per verification request; this has been left open for now, with telcos and the government yet to finalise sharing ratios. Participation by banks and fintechs will be voluntary, but they stand to benefit from better fraud checks and faster onboarding.
Bridging the Fraud Prevention Gap
Currently, there is no reliable mechanism to verify whether a mobile number linked to a bank account is really owned by the account holder. The new platform aims to plug that gap, particularly in an era of rising phishing, smishing and fraud attempts. By enabling direct communication between financial service providers and telecom operators, the government expects real-time validation to drastically reduce identity-linked losses.
Dual Benefit: Safety and Revenue
Financial players can use the MNV system to enhance customer due diligence, while telcos get to monetise certification of mobile ownership. This dual benefit aligns with the government’s policy push to enhance digital security while leveraging existing telecom infrastructure. As one official noted, “The verification fee can be shared between the government and telcos.”
Looking Forward
Telecom companies had initially pushed for setting the verification fee themselves, but authorities declined and now aim to finalise the pricing after stakeholder consultations. The roll-out of the platform represents a shift in how digital identity infrastructure is monetised and how regulatory frameworks integrate telecoms and finance sectors. It may mark the beginning of new cross-industry services where telcos play a core role in financial-tech ecosystem security and compliance.
