Daijiworld Media Network – New Delhi (MS)

New Delhi, Nov 30: The Telecom Regulatory Authority of India (TRAI) has cleared the air regarding widespread confusion over One-Time Passwords (OTPs) and the new regulations set to trace their source.

In recent days, there were media reports suggesting that if telecom companies failed to comply with TRAI's new rules regarding OTP traceability, the service would be withdrawn starting December 1. The report caused widespread panic among consumers, as OTPs are essential for online transactions, banking, and various business activities. Many feared that this would lead to disruptions in essential services, especially in sectors like e-commerce, banking, and digital payments.

However, TRAI has now clarified that the media reports were inaccurate. In a post on its official X (formerly Twitter) account, the telecom regulator stated that the rule requiring telecom companies to disclose the source of OTPs is mandatory, but it assured the public that there will be no delays in OTP delivery. The clarification aims to ease concerns, emphasising that the regulatory changes are meant to enhance security, not disrupt services.

The new rule was introduced to curb fraudulent activities associated with OTPs. With the increasing prevalence of scams and cybercrimes that use fake OTPs to steal personal and financial information, TRAI has mandated that telecom companies must reveal the origin of OTP messages to help track and prevent misuse. By ensuring that the source of OTPs is identifiable, TRAI aims to reduce cheating and fraud that typically occurs through fake or misleading OTPs sent to unsuspecting users.

While the regulation is seen as a step forward in improving security, major telecom companies, including Jio, Airtel, and Vodafone, initially opposed the rule. Their concerns centered around the technological and operational challenges of implementing the new traceability system. As a result, the original deadline for compliance, set for October 31, was extended to November 30 to allow telecom operators more time to adjust their systems.

TRAI, in its statement, reassured users that while telecom companies are required to adhere to the new regulation, no disruptions in OTP services will occur. The deadline extension has been granted to accommodate the telecom industry's preparations, but the move is seen as crucial to addressing the rising threat of OTP-related fraud and to ensure greater accountability in the digital space.
The clarification by TRAI now puts an end to the confusion and assures consumers that their ability to conduct online business transactions securely will not be affected.