Daily Current Affairs : 18-August-2023
In a bid to bolster mobile user protection and create a more secure digital environment, two significant reforms have been introduced. These reforms not only align with prior initiatives such as the launch of the citizen-centric portal, Sanchar Saathi, but also play a pivotal role in strengthening India’s battle against cybercrimes and financial frauds. Let’s delve into the specifics of these reforms and their implications.
Empowering Mobile User Protection: The Two Key Reforms
The reforms introduced to safeguard mobile users and enhance the integrity of the digital landscape encompass two vital aspects: KYC Reforms and Point of Sale (POS) Registration Reform.
KYC Reforms: Safeguarding Identity and Preventing Misuse
The Know Your Customer (KYC) process serves as a pivotal step in uniquely identifying customers and ensuring their traceability before granting telecom services. To counteract the misuse of printed Aadhaar documents, a crucial change has been made: the mandatory capture of demographic details via scanning the QR code on printed Aadhaar cards. Moreover, when a mobile number is disconnected, a new customer will not be assigned the same number for a period of 90 days, effectively curbing any potential misuse.
The Aadhaar E-KYC process has also been fortified. While thumb impressions and iris-based authentication were already part of the process, the introduction of facial-based biometric authentication adds an extra layer of security.
Point-of-Sale (POS) Registration Reforms: Curbing Rogue Elements
The Point of Sale (POS) Registration Reform introduces a mandatory registration process for Franchisees, Agents, and Distributors under Licensees. This mandates a written agreement between the POS entities and the Licensees, thereby establishing a formal and transparent framework for their operations.
One of the primary objectives of this reform is to eradicate rogue POS entities that engage in fraudulent practices by issuing SIM cards to anti-social or anti-national elements. By ensuring mandatory registration and formal agreements, the reform aims to eliminate any gray areas in the distribution of telecom services and prevent unauthorized and potentially harmful SIM card issuance.
A stringent clause has been incorporated to deter any illicit activities carried out by POS entities. If a POS is found engaging in illegal practices, it will face termination and subsequent blacklisting for a period of three years. This measure acts as a strong deterrent against any misconduct, ensuring that only genuine and responsible players are involved in the distribution network.
Important Points:
KYC Reforms: Safeguarding Identity and Preventing Misuse
- Unique identification of customers through KYC process.
- Capture of demographic details via QR code scanning of printed Aadhaar.
- Prevention of printed Aadhaar misuse.
- 90-day waiting period for reallocation of disconnected mobile numbers.
- Strengthened Aadhaar E-KYC with facial-based biometric authentication.
Point-of-Sale (POS) Registration Reforms: Curbing Rogue Elements
- Mandatory registration of Franchisees, Agents, and Distributors (POS) under Licensees.
- Formal written agreements between POS entities and Licensees.
- Eradication of rogue POS issuing SIM cards to anti-social/anti-national elements.
- Prevention of unauthorized SIM card distribution.
- Termination and 3-year blacklisting for POS engaging in illegal activities.
Why In News
Two impactful reforms were implemented to bolster Mobile User Protection, fostering a more pristine and secure digital landscape. These measures are set to cultivate trust and confidence among users while maintaining the integrity of the mobile experience.
MCQs about Strengthening Mobile User Protection
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What is the primary purpose of KYC reforms in the context of mobile user protection?
A. Enhancing smartphone features
B. Preventing misuse of printed Aadhaar
C. Increasing call and data tariffs
D. Introducing new SIM card designs
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What is the consequence of a Point of Sale (POS) entity engaging in illegal activities under the new reforms?
A. A fine
B. Warning letter
C. Termination and 3-year blacklisting
D. Mandatory training program
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Which additional biometric authentication method has been introduced in the Aadhaar E-KYC process as part of the reforms?
A. Fingerprint scanning
B. Voice recognition
C. Iris-based authentication
D. Facial-based biometric authentication
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What is the significance of the mandatory registration process introduced for Franchisees, Agents, and Distributors (POS) under Licensees?
A. Increasing paperwork
B. Reducing distribution efficiency
C. Eradicating rogue POS activities
D. Creating additional costs for consumers
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