No Delay In OTP Delivery Due To New Rules From Dec. 1: TRAI

The Telecom Regulatory Authority of India’s new guidelines on message traceability will not disrupt one-time password-based transactions from December. Earlier, media reports stated that users across telecom networks are likely to face disruptions in several OTP-based online transactions like banking services, e-commerce, and money transfer, among others.

However, the regulatory body has issued an update clarifying that there will be no delay in the delivery of OTPs for essential services from Dec. 1.

Earlier it was anticipated that non-compliance with the guidelines could disrupt the one-time passwords (OTPs) based on transactions for telecom giants, including Reliance Jio Infocomm Ltd., Bharti Airtel Ltd., BSNL, and Vodafone Idea Ltd.

The authority has clarified that users across telecom networks are not likely to face disruptions in OTP-based online transactions like banking services, e-commerce, and money transfer.

In a bid to combat online scams and frauds and protect customers from spams and fraudulent calls or messages, the TRAI has over the past few months issued a number of directives for telcos.

The telecom regulator’s directive to companies to provide message traceability is set to come into effect from Dec. 1. 

Scammers often use fake OTPs to access mobile phone users’ financial data and to scam them. TRAI’s message traceability rules mandate telecom companies to make all their messages traceable in order to stop scammers from misusing the messaging system.

As per the regulation first announced in August, telcos are required to implement systems so that a message can be traceable all the way from the sender to the recipient. 

Financial institutions, banks, and e-commerce companies are mandated to confirm the entire delivery chain of all communication delivered by them. Messages that cannot be traced or do not correspond with records will be blocked. 

Companies that send promotional messages are also required to give all relevant information to telecom companies, including their call-back numbers and URLs.

The TRAI had initially set a deadline of Oct. 31 to implement these measures, but this was later extended till Nov. 30 after big players like Jio, Airtel, BSNL, and Vodafone requested more time.

To mitigate the concerns regarding blockage of messages, TRAI has allowed operators to implement the process gradually. From now till Nov. 30, operators will be sending daily warnings to entities that do not comply with chain declaration requirements. 

TRAI has clarified that even if telecom operators do not comply with the Dec. 1 deadline and fail to put in place the required infrastructure, significant disruptions in OTP delivery will not be seen.

If telecom operators do not comply with the Dec. 1 deadline and fail to put in place the required infrastructure, significant disruptions are expected in OTP delivery. Mobile phone users may face significant delays in receiving OTPs from various service providers like banks, ticket booking platforms, and e-commerce websites. 

As telecom service providers had expressed concerns regarding the technical complexities involved in deploying the message traceability system, the TRAI has clarified that the new requirements will not affect the speed or reliability of OTP deliveries.