The government should engage with the Reserve Bank of India (RBI) to ensure that one-time passwords (OTPs) via SMS continue to remain the primary factor of authentication, the Cellular Operators Association of India (COAI) said in a statement about the recent SIM Binding directions.
“COAI urges DoT to engage with the Reserve Bank of India (RBI) to ensure that for all financial transactions, the primary factor of authentication should mandatorily be through SMS OTP, which continues to remain the most secure, operator-verified channel with guaranteed traceability. Strengthening this requirement will create a consistent and secure authentication framework across the financial ecosystem, further reducing the risk of fraud and reinforcing consumer trust,” the industry body mentioned.
For context, the SIM directions require app-based communication services (including Telegram, WhatsApp, Snapchat, and Sharechat) to restrict users from accessing their services without an active SIM card. The service providers also have to log users out of web applications within a period of six hours. This essentially means that if you access any of these services on your laptop, you will have to log in again after six hours.
COAI believes that SIM Binding will significantly reduce spam and fraudulent communications perpetrated through these platforms and help mitigate financial fraud. It had previously urged the government to employ the measure in August this year.
Why COAI Believes SIM Binding Will Help Prevent Fraud:
The industry body cited a US Cybersecurity and Infrastructure Security Agency (CISA) alert from November 2025, which warned of “Guardian” spyware targeting users of messaging platforms through malicious links.
“This tool compromises both Android and iOS devices, enabling data theft and surveillance. It has been deployed globally, with human rights defenders and journalists among the primary targets.
“As CISA strongly encourages users to take steps to secure their mobile communications, India’s pioneering decision to mandate persistent SIM binding emerges as a timely and critical security measure,” COAI argues.
Further, it mentions a Reuters report that revealed that a social media giant (Meta) failed for at least three years to identify and stop fraudulent ads. The report mentioned that Meta estimates that its platforms show users 15 billion scam ads a day.
“These ads exposed billions of messaging app users to fraudulent e-commerce and investment schemes, illegal online casinos and the sale of banned medical products,” COAI mentions, adding that the SIM binding directive will be a vital step in curbing fraud and abuse on digital platforms.
It further adds that while messaging services are taking steps to combat fraud, their effectiveness is limited. “For example, it is concerning to note that one prominent platform has acted on only about 2.5% of total ban appeals — a meagre rate…
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