Lok Sabha Question No. 4447 (UNSTARRED), answered on 2017-03-29
Subject: Verification of Customers
Ministry: COMMUNICATIONS
Asked by: RAKSHA NIKHIL KHADSE

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.4447 TO BE ANSWERED ON 29 TH   MARCH, 2017

## VERIFICATION OF CUSTOMERS

## 4447. SHRIMATI RAKSHATAI KHADSE:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Government has taken note of the alleged non-compliance, violation of customer  acquisition  form  and  verification  norms  laid  down  by  Telecom  Enforcement Resource and Monitoring Cells by telecom operators during the recent verification process;
- (b) if so, the details thereof;
- (c) whether  the  Government  proposes  to  take  any  stringent  action  and  impose  high penalties against such erring telecom operators and if so, the details thereof;
- (d) whether the Government proposes to put in place an effective mechanism to verify identities of existing mobile users by the Government and if so, the details thereof; and
- (e) the  time  by  which  the  said  verification  of  existing  mobile  users  is  likely  to  be completed?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) & (b) Madam, as per the instructions issued by Department of Telecom (DoT), all the Telecom  Service  Providers  (TSPs)  are  mandated  to  verify  all  the  customers  as  per prescribed  Know  Your  Customer  (KYC)  norms  before  enrolling  them.  The  subscriber verification  process  has  evolved  with  passage  of  time  and  consequently  DoT  has  issued various guidelines to TSPs to strengthen the verification process. The existing instructions on subscriber  verification  dated  09.08.2012  have  been  issued  by  DoT  in  consultation  with Ministry of Home Affairs (MHA). In order to ensure adherence to these instructions by all the TSPs  in carrying out the verification as per prescribed KYC  norms,  the  Telecom Enforcement, Resource & Monitoring (TERM) Cells carry out sample verification of Customer Acquisition Form (CAF) of 0.1 % of all the customers available in the system at the end of each month. The sample size in respect of J&K, NE and Assam Service Areas is 0.2% on quarterly  basis.  This  verification  process  by  TERM  Cells  brings  out  non-compliant  cases where  DoT  guidelines  were  violated  by  TSPs  in  acquiring  the  customer  which  includes following cases:-

- i. Missing CAF.
- ii. Pre-activated Mobile Connections
- iii. Missing Photo/Proof of Identity/Proof of address along with CAF.

- iv. Connection activation based on apparently forged/fake documents.
- v. Bulk Connections (more than 9 connections) issued to an individual by all Licenced Service Providers in a Licenced Service Area (LSA).
- vi. Bulk Connections issued to a company or an organization or at any given address by all Licensed Service Providers in a Licence Service Area (LSA) without following due procedure.
- vii. Discrepancies in entries in customer database.

During last year 2016 and current year i.e. 2017 (upto 28.02.2017), out of total of  1.71  crores  CAFs  audited,  a  total  of  8.76  lakhs  CAFs  were  found  non-compliant  to prescribed CAF verification norms by TERM Cells.

(c) As per existing guidelines, in case a CAF is found non-compliant, stringent penalty is imposed for each failed CAF which ranges from Rs. 1,000/- to as high as Rs. 50,000/- per CAF based on the CAF failure rate. There is also provision of filing of complaints/FIR against apparently forged cases. In addition, in case of non-compliant CAF, Service Provider has to either disconnect the connection or to submit the compliant CAF to TERM Cells within 72 hrs failing which further financial penalty is prescribed.

(d) & (e) Recently,  Hon'ble  Supreme  Court,  while  disposing  off  the  Writ  Petition  No. 607/2016 filed by Lokniti Foundation V/s Union of India, vide its order dated 06.02.2017 has directed for re-verification of all existing mobile subscribers through Aadhaar based e-KYC process preferably within a period of one year. Action has been initiated as per the orders of Hon'ble Supreme Court.

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