Due to the rise in cyber fraud and identity theft cases in India, the Department of Telecommunications (DoT) has proposed a new Mobile Number Validation (MNV) platform.
This system will let banks and fintech companies verify mobile number ownership directly with telecom operators.
The goal is to stop fraudsters from using mobile numbers linked to fake or “mule” accounts, which are often used to withdraw money illegally after cyber fraud.
The Parliamentary Standing Committee on Home Affairs supports this initiative.
They also want telecom companies to use advanced technologies like AI-powered facial recognition for verifying SIM subscribers, to prevent identity fraud during SIM issuance.
Changes in Telecom Cyber Security Rules and Privacy Concerns
Currently, there is no way to ensure that the mobile number linked to a bank account truly belongs to the account holder.
To fix this, the DoT has proposed amendments to telecom cyber security rules so that banks and fintech firms can verify phone number ownership directly with telecom providers.
However, privacy activists are concerned that these new rules could violate user privacy and are calling the measures excessive.
Despite these concerns, the parliamentary committee is pushing for quick implementation, but with privacy safeguards in place to protect users.
Possible Impact on Users
Once this system is in place, some innocent users might face difficulties.
For example, people who have SIM cards registered in the names of their parents, siblings, or others but use those numbers in their bank accounts could be affected.
The full impact will become clear only after the system is fully implemented.
