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The Telecom Regulatory Authority of India (TRAI) is set to introduce new regulations for the delivery of One-Time Passwords (OTPs) beginning September 1, 2024. This move is aimed at enhancing the security and efficiency of OTP-based transactions, which are widely used for online authentication and financial activities.
Under the new guidelines, service providers will be required to adhere to stricter protocols in the transmission of OTPs. These changes are designed to address growing concerns over OTP security and the increasing prevalence of fraudulent activities involving these critical codes.
One significant aspect of the new regulations is the mandatory implementation of a time-bound delivery mechanism. OTPs must be delivered within a specified time frame to reduce the risk of delay or interception. Additionally, service providers will need to ensure that OTPs are sent through secure channels, minimizing the potential for unauthorized access.
The rules also stipulate that users will be notified in case of failed OTP delivery attempts. This provision aims to provide greater transparency and allow users to take immediate action if they suspect any issues with their OTPs.
TRAI’s initiative comes in response to feedback from consumers and industry stakeholders who have highlighted various issues related to OTP security, including phishing attacks and unauthorized access. By imposing these regulations, TRAI seeks to fortify the integrity of digital transactions and enhance user trust in electronic authentication processes.
Service providers have been given a grace period until September 1 to comply with these new requirements. TRAI has mentioned that non-compliance will result in penalties, underscoring the relevance of adhering to these updated standards.