New TRAI rule may cause delays in OTP from September 1: Here’s everything you need to know

A new directive by the Telecom Regulatory of India may block OTPs from banks and other services starting next month.

The new TRAI rule will reportedly come into effect from September 1. (Image Source: Freepik)

With smartphones and internet connectivity reaching almost every part of India, we have seen a huge spike in spam calls and fraudulent messages. To combat this issue, the Telecom Regulatory Authority of India, also known as TRAI is reportedly asking major telecom operators in the country to regulate messages containing URLs, OTT link, APK files and phone numbers unless they are whitelisted.

The new rule, which might be enforced on September 1, is aimed at reducing the number of spam and phishing attempts by scammers who try to dupe people using SMS. Since it requires institutions such as banks and websites to register themselves and whitelist their number by August 31 if they want to send OTPs, this might affect banks and other services that use OTPs to offer transactional alerts or use the service for authentication purposes.

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Currently, companies and banks have to register their header and template with telecom networks excluding the content of their messages. However, the new directive instructs network operators to create a new mechanism that can help read the content of messages and block messages that do not follow the template.

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The new rule will help reduce fraudulent activity, but it looks like Reliance Jio, Bharti Airtel and Vodafone Idea are looking to extend the deadline. However, a recent report suggests TRAI is unwilling to give telecom operators more time.

Earlier this month, TRAI directed telecom operators to disconnect all resources of unregistered telemarketers that were found to make spam calls and block them for up to two years.