The Indian government is set to revolutionize the process of acquiring SIM cards by completely eliminating paper-based documentation starting from 2024, as confirmed by a recent notification issued by the Department of Telecom (DoT). This significant change aims to streamline the procedure and curb SIM card-related fraud while simplifying the process for consumers.
Telcos, grappling with the costly and time-consuming nature of paper-centric Know Your Customer (KYC) processes, have long advocated for a digital transformation in this domain. The shift away from paperwork is anticipated to enhance efficiency and significantly reduce instances of SIM fraud.
The Aadhaar-based verification system, recognized for its speed and seamlessness, has emerged as a preferred method for obtaining a new SIM card within minutes. Unlike the lengthy wait times associated with traditional paper-based verifications, Aadhaar-based procedures often lead to activation within a few hours.
Until now, the acquisition of a SIM card necessitated cumbersome documentation, involving proof of identity, proof of address, and the completion of customer acquisition forms (CAFs), contributing to a time-consuming and tedious process.
While the specifics of the digital onboarding process have not been detailed in the notification, it's expected that Aadhaar authentication may be an option, enabling individuals to validate their identity using biometric details. Historically, obtaining a SIM card involved a nominal fee, but the move towards digitalization is poised to transform this aspect as well.
The issue of prepaid SIM card issuance has been a concern due to the susceptibility to fraudulent activities facilitated by fake documents. However, the transition to digital methods significantly mitigates such risks, allowing telecom operators to prioritize service quality over administrative processes, which previously involved extensive form printing and document verification from customers.
