Banks and UPI Apps will only be able to verify mobile number ownership with telecom operators to prevent fraud

New Delhi. In view of the increase in cases of cyber fraud and identity theft in the country, the Department of Telecommunications (DOT) has proposed a new mobile number validation (MNV) platform. According to ET Telecom report, this platform will allow banks and fintech companies to confirm the ownership of mobile numbers directly with telecom operators. This initiative aims to prevent the use of mobile numbers in fraud or “mule” accounts, which are used to withdraw money after cyber fraud.

Support of Parliamentary Standing Committee
This initiative has also received the support of the Parliamentary Standing Committee of Home Affairs. Apart from this platform, the committee wants techniques such as AI-Powered Facial Recognition for Telecom SIM subscriber verification to prevent identity fraud while releasing the SIM.

Amendment in Telecom Cyber ​​Safety Rules

Currently, there is no system that can ensure that the mobile number attached to the bank account is actually the account holder. This new system will allow banks and fintech operators to confirm the ownership of phone numbers directly with telecom providers. To make this possible, DOT has also proposed to amend the Telecom Cyber ​​Security Rules.

Confidential worker unhappy
However, privacy workers are not happy with this step. They believe that these rules are excessive and can endanger the privacy of users. Despite this, the Parliamentary Committee has urged to implement the system as soon as possible with privacy security measures to prevent fraud.