OTPs for online payment could be affected from November 1: What you need to know about TRAI's new regulations

A new regulation from the Telecom Regulatory Authority of India (TRAI) set to take effect on November 1 may significantly impact the delivery of crucial service messages, including OTPs for online transactions. Telecom companies have raised concerns over potential disruptions, warning that the changes could interfere with essential communication between businesses and customers.

The Telecom Regulatory Authority of India (TRAI) has introduced new guidelines requiring telecom companies to ensure that messages sent from Principal Entities (PEs) to customers are traceable.?

This change is set to take effect right after Diwali, on November 1.

The rules will apply to various sectors, including banks and e-commerce platforms.?

Messages that lack clear sender identification or have inconsistent sender details will be blocked, raising concerns about potential disruptions in services reliant on One-Time Passwords (OTPs) for online transactions and package deliveries.

With approximately 1.5 to 1.7 billion commercial messages sent daily in India, any failure to deliver these messages could lead to significant service interruptions.

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Many PEs and telemarketers are reportedly unprepared to comply with these regulations, as they have not implemented the necessary technology to track message traffic effectively.?

This situation has prompted calls for additional time to adjust and ensure minimal disruption.

On a positive note, some e-commerce companies have already started using alternatives, like sending OTPs through platforms such as WhatsApp and shopping apps, to mitigate potential issues.

The industry is urging TRAI to allow a "logger mode" for the mandate starting November 1, enabling messages to continue flowing without disruption in case discrepancies.

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