Important Update: Could OTP Services Be Disrupted from November 1? Jio, Airtel, and Vi Raise Concerns

As of November 1 , a significant change in the telecom sector could potentially disrupt online transactions across India. Telecom giants like Jio, Airtel, and Vodafone-Idea have issued warnings regarding the new regulations from the Telecom Regulatory Authority of India (TRAI). These changes aim to enhance security and prevent fraud but may create challenges for users relying on One-Time Passwords (OTPs) for transactions.

The Shift in Regulations
Telecom companies have been informed that messages containing OTPs and other critical communications must now be traceable. This directive is part of TRAI's effort to eliminate undefined messages and block those from mismatched telemarketer chains. Unfortunately, operators have raised concerns that many telemarketers and Principal Entities (PEs) are unprepared for this transition, which could hinder the delivery of OTPs essential for online transactions.

Concerns Raised by Telecom Operators
A report from the Cellular Operators Association of India (COAI) indicates that daily message traffic in India ranges from 1.5 to 1.7 billion. While telecom operators claim their systems are ready to implement the new rules, the lack of preparedness among telemarketers could lead to substantial delivery issues. This scenario raises the possibility of users experiencing difficulties in receiving OTPs, thereby affecting transactions and services reliant on them.

Request for Extension and Proposed Solutions
In light of these challenges, telecom companies have requested additional time from the Reserve Bank of India (RBI) to allow telemarketers and PEs to complete their necessary preparations. They have proposed that messaging traffic be managed in a "logger mode" starting November 1. This approach would prevent the blocking of messages during the initial phase, ensuring that users can still receive OTPs without interruption.

A Temporary Solution Ahead
Telecom operators are committed to sending daily reports to telemarketers and key organizations to facilitate this transition. While full compliance with the new rules may not be achieved until December 1, these interim measures aim to minimize disruption. As the deadline approaches, users should remain vigilant and stay informed about these changes to avoid any inconvenience in their online transactions.