Government to Launch Mobile Verification Platform for Banks to Curb Online Fraud, Boosting Telecom Revenue

The Indian government, through the Department of Telecommunications (DoT), is set to launch a Mobile Number Verification (MNV) platform. This initiative is part of new cybersecurity rules designed to tackle the rising issue of online fraud, including phishing attacks. The platform will enable banks and financial institutions to directly verify the ownership of mobile numbers with telecom service providers. Currently, there is no robust legal mechanism to confirm if mobile numbers linked to bank accounts truly belong to the account holders. This new system aims to plug that gap.

Telecom operators are mandated to join this platform, and they will earn a fee for every verification request processed. While the DoT has not yet finalized the fee amount, it will be decided in consultation with stakeholders and announced before the platform's launch. Initially, draft rules proposed a fee of Rs 1.5-3 per request, but this has been removed from the final rules and will be notified separately.

Impact: This platform is likely to positively impact the telecom sector by creating a new, albeit potentially small, revenue stream. For banks and financial institutions, it offers an enhanced tool for fraud prevention and customer verification, potentially reducing losses from online scams. The overall cybersecurity framework in India will be strengthened. Rating: 6/10.

Difficult terms: Phishing: A fraudulent attempt to obtain sensitive information such as usernames, passwords, and credit card details by disguising oneself as a trustworthy entity in an electronic communication. Department of Telecommunications (DoT): A government department responsible for policy formulation, licensing, and the development of telecommunications in India. Telecom operators: Companies that provide telecommunication services, such as mobile phone networks and internet access. Mobile Number Verification (MNV) platform: A system designed to verify the authenticity and ownership of a mobile phone number. Cybersecurity rules: Regulations and guidelines established to protect computer systems, networks, and data from theft, damage, or unauthorized access.