While the new norms of KYC have hit the verification in a huge way, the telecom industries were not left behind. Initially, KYC has become mandatory only for banking and financial services, but later the Government realized that it shall be extended as far and wide as possible where ever there are chances of corruption, misuse of data or over exploitation of information.
Airtel and Idea Ask Customers to Re-Verify Connections Using Aadhaar
One such area that was identified was the telecom industry, where people took numbers on a wide range as sim cards began getting available within few hours.
The new rule of KYC hits telecom industries
It was found that there are more than 1.1 Billion subscribers of telecom in the country and majority of them have not submitted any verification documents while taking a SIM card on their name. Thus, the new Supreme Court order instructed all the subscribers to come forth and go through a verification process based on their submission of Aadhar Card.
Amongst all the telecom sectors, Airtel and Idea Cellular took the charge and began their process of collecting KYC documents for their customers – old and new. This order was passed by the Supreme Court in February and they have given all the telecom sectors a deadline of one year – Till February 2018.
Extra Charges to the Telecom sector
While verification of Aadhar and submission of KYC documents became mandatory, it has been estimated that the company will borne extra charges – to set up a process of KYC collection and then the resources deployed to fulfill the norms.
It has been estimated that the company may have a burden of about Rs. 1000 crore incurred to get legal into KYC collection from all customers. Apart from this, they will also be fighting the war of tariff.
Airtel and Idea Cellular make the first move
Idea and Airtel are the first two companies to come out and take this Know – Your – Customer based on Aadhar Card verification seriously. Idea Cellular has launched the E-KYC document collection where people can simply go on to the official website of Idea and submit their documents to the company directly. They are not charging the customer for this.
Both the companies have instructed their store executives to begin this process for all new customers going forward. This means that now, if you have to opt for a new number, you will be required to submit all documents pertaining to KYC compliance.
For existing customers too, the store executives will help to let the customers know the verification code that is required in order to begin the process of Aadhar verification.
The best way to be compliant with KYC is to reach out to the service provider executive either thought their customer service or store.
This entire strategy has definitely brought in a paradigm shift in the telecom sector, but it is for the good of the public at large. It is assumed that this verification will help the Government to eliminate fraud numbers to a great deal. Thus, it will put a stop to various illegal activities and terrorist planning on unauthorized numbers. 🙂