In a country where scammers steal billions through fake phone numbers and fraudulent calls, India’s telecom watchdog is fighting back with a powerful new weapon: a nationwide mobile number verification system.
With cyber fraud cases increasing by more than four times in fiscal 2024, resulting in losses of $20 million, the Department of Telecommunications (DoT) has proposed sweeping changes to cybersecurity rules that could transform the way mobile numbers are used across the country.
New Platform to Stop Phone Number Misuse
The DoT’s draft rules, published on June 24, introduce a Mobile Number Validation (MNV) platform that will act like a digital bouncer for phone numbers. Banks, payment companies, and other businesses will be able to instantly check if a mobile number is genuine before processing transactions.
This system targets a growing problem: fraudsters using fake or invalid phone numbers to trick people into sending money through UPI payments, online banking, and other digital services. The new platform will verify whether a mobile number exists in authorized telecom operators’ databases.
Who Pays and How Much
Under the proposed rules, organizations using phone numbers to identify customers – now called “Telecommunication Identifier User Entities” (TIUE) – will pay different rates for verification:
- Government-authorized entities: ₹1.50 per number check
- Private companies: ₹3 per number check
Banks and financial institutions, which process millions of UPI transactions daily using mobile numbers, are expected to be the biggest users of this service.
90-Day Cooling Period for Fraud Numbers
The most striking feature is the automatic punishment system, which is already being tested. According to sources, at least one major bank is running a pilot program in which mobile numbers involved in fraudulent activities are flagged and deactivated for 90 days.
After this cooling period, the number’s fraud history gets automatically deleted, ensuring that innocent people who later receive the same number aren’t affected by previous misuse.
Broader Powers for Law Enforcement
The new rules also give government agencies and police broader access to transaction details from non-telecom companies. This means investigators can track fraudulent activities across different platforms more easily.
The DoT has invited public feedback on these proposed changes within 30 days, signaling that the final rules could be implemented soon.
As digital payments continue growing in India, these measures represent the government’s most comprehensive attempt yet to protect citizens from the rising tide of mobile-based fraud.
