Telecom Department Initiates New Reforms With Simplifying KYC Process

New Delhi: The Department of Telecommunications (DoT) on Tuesday started the implementation of new telecom reforms by simplifying the KYC (Know Your Customer) process. The Union Cabinet had last week approved a slew of measures for its cash-strapped telecom sector including a four-year moratorium on airwaves payments due to the government and 100% FDI through automatic route in the sector.

The department said, "Customer consent has been made compulsory in case the Aadhaar is being used and demographic details are being obtained electronically from UIDAI."

For contactless, customer centric and secured KYC process, the DoT said that it has implemented three fresh ways.

1) Aadhaar-based e-KYC: The process has been re-introduced for new mobile phone connections. Service providers will be charged Re 1 per customer authentication by the UIDAI for this paperless and digital process.

2) Self-KYC: Issuance of mobile connection is done via an app/portal-based online process wherein customers can apply for connection sitting at home or office and can get their SIM card delivered at door step using documents electronically verified by UIDAI or DigiLocker.

3) OTP based conversion of connection: The implementation of OTP based conversion process enables a subscriber to convert his mobile connection from prepaid to postpaid and vice-versa virtually via OTP-based authentication.

Aadhaar is a 12-digit identification number issued by UIDAI.

Currently, a subscriber needs to visit a Point of Sale (PoS) unit with original identity documents and address proof for KYC verification.