OTP refers to the One Time Password, which is unique and is valid only for a limited time frame and single sign-in session. In today’s time, where online transactions have become an essential part of our life, these OTP SMS services have become extremely important to save people from hackers and illegal activities. These OTP work as a mode of authentication to verify the users before the transactions. An OTP can be sent via three mediums which include voice(call), e-mail, SMS.
For security reasons, an OTP is designed only for a short time. There are many OTP service providers in India. One of the most regarded OTP SMS service providers is mTalkz. They are known to offer the fastest way of communication to their users. They let their users pay only for the OTP’s that are delivered in 30 seconds; above this time limit, they themselves bear the cost. HTTP protocols are used by mTalkz to provide a safe and secure platform to the users. Even more, their services are 24*7 hours available for the comfort of the users.
OTP’s have become an essential part of our lives. But, customers of various banks like SBI, HDFC, ICICI, Axis bank, federal banks and other banks may not be able to complete online transactions from 1st April because these banks have failed to comply with the regulations issued by the Telecom Regulatory Authority of India(TRAI). These days OTP usage has increased a lot, and the issue pertaining to OTP can cause inconvenience to the customers. According to TRAI, almost 40 companies have been listed that have not complied with the new SMS regulations.
Reasons why banks could face OTP issues from 1st April?
- To make an online transaction, banks send OTP to the customer’s registered mobile number or to their e-mail id. Customers are then supposed to enter the exact detail in order to verify and complete the transaction.
- But, the Telecom Regulatory Authority of India(TRAI) started getting complaints that unnecessary messages are also being sent to the customers.
- Therefore, TRAI took charge and issued the Telecom Commercial Communications Customers Preference Regulations, 2018( TCCCPR) on 19th July 2018 to curb the issue of excessive and unwanted messages.
- From that time onwards, TRAI started communicating with the sender of these messages through the Telecom Service Providers(TSP) so as to fulfil the regulatory requirements.
- TSP’s have made repeated attempts to communicate with the principal entities, including the major banks who were sending the bulk SMS. Telecom Service Providers have requested them to comply with the regulations stated by TRAI.
- TRAI then realised that various principal entities were not adhering to the rules and regulations.
- TRAI then directed the principal entities, including the banks and telecom companies, to adhere to the rules and fulfil the requirements before 31st march 2021. If banks fail to follow the regulations, then the customers will face OTP issues from 1st April 2021.
This move by the Telecom Regulatory Authority of India(TRAI) aims to prevent spam and fraudulent messages. OTP SMS service is meant to verify the customers so that no fraudulent activities take place, but these unnecessary messages have created chaos. And to curb these issues, TRAI has undertaken the steps as mentioned earlier.