The Department of Telecommunication (DoT) introduced draft cybersecurity rules in 2025 to curb online fraud through mobile number validation. The new Mobile Number Validation (MNV) platform requires banks and other telecom identifier user entities (TIUE) to verify mobile numbers before digital transactions or app sign-ups. This verification involves a fee, affecting users, families, and businesses across India.
Mobile Number Validation Platform and Fees
The MNV platform is a government-run system to verify mobile numbers. Banks and authorised entities pay ₹1.50 per verification. Other entities pay ₹3. This replaces all previous verification methods. Numbers flagged as fake or suspicious are deactivated for 90 days. The system aims to reduce fraud by linking each mobile number to a single verified identity.
Impact on Banking and Individual Phone Numbers
The rules do not explicitly require one mobile number per bank account. However, frequent paid verifications may push banks to enforce unique phone numbers per account. This limits the use of shared numbers for multiple accounts. Family members may no longer assist others with mobile banking or pension transfers. Emergency money transfers could become complicated if the primary phone user is unavailable.
Effect on Low-Income Families and Shared Phones
Many low-income families share one phone for multiple users. This includes grandparents receiving pensions, parents managing work and banking, and children attending school online. The MNV platform may flag shared numbers as suspicious, blocking access to digital services. Families in rural areas and migrant workers in cities may lose access to welfare schemes and money transfers. Women and elderly people, often without personal phones, face exclusion from digital services.
Consequences for Daily Life and Access
The rules may force families to choose which members get digital access. Mothers might lose the ability to send money. Children could be locked out of online classes. Domestic workers may struggle to receive digital payments. Telemedicine appointments and vaccination registrations could be blocked for families sharing phones. Overall, essential services may become less accessible and more costly.
Challenges for Small Businesses and Start-ups
Small businesses face high costs due to verification fees. For example, a food delivery app with 10,000 customers could pay ₹30,000 monthly. Start-ups struggling financially may pass these costs to customers through higher prices. Local shops and restaurants might stop accepting digital payments. Service providers like plumbers and electricians could abandon booking apps. This raises barriers for small businesses competing with larger firms that can afford the fees.
Questions for UPSC:
- Discuss the impact of digital identity verification on financial inclusion in India. How can policy balance security and accessibility?
- Critically examine the challenges faced by low-income families in accessing digital services in India. What measures can mitigate these issues?
- Explain the role of mobile technology in transforming rural economies. Discuss the implications of restrictive telecommunication regulations on this transformation.
- With suitable examples, discuss the effects of regulatory compliance costs on start-ups and small businesses in the digital economy. Comment on possible government interventions.
