The Department of Telecommunications (DoT) has drafted a new regulation mandating that all entities, including banks, fintech companies, and digital service providers, verify mobile numbers exclusively through its Mobile Number Validation (MNV) platform. This move, aimed at curbing online fraud and enhancing transparency, would also impose a verification fee for each One-Time Password (OTP) request.
Details of the Proposed Rule
Under the draft, banks would pay ₹1.50 for each mobile number verification, while non-banking institutions such as e-commerce platforms, fintech firms, and online service providers would incur a charge of ₹3 per verification. The DoT’s proposal further stipulates that any suspicious or fraudulent mobile number could be deactivated for up to 90 days.
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The regulation seeks to eliminate the use of unverified numbers in financial and online transactions, thereby reducing instances of phishing, identity theft, and fraudulent account creation. The DoT argues that centralizing the verification process through its platform would ensure uniform standards and stronger consumer protection.
Concerns Over Digital Inclusion
Experts warn that the rule could have unintended consequences for millions of households in rural and economically weaker sections. In many Indian families, a single mobile number is shared among multiple members for services such as pension collection, digital education, and online banking. If service providers make it mandatory for each account to have a separate mobile number, coupled with the new verification charges, it could financially burden low-income users and restrict their access to essential digital services.
Digital rights advocates have urged the DoT to consider a subsidised or tiered pricing model for rural and marginalised users. They also caution that the policy, while well-intentioned, must strike a balance between fraud prevention and accessibility to ensure it does not inadvertently widen the digital divide.
The draft rules are currently open for public feedback, and the DoT has indicated it will review all stakeholder comments before finalizing the policy. If implemented, the new verification fees could come into effect within the next fiscal year.