DoT Rolls Out Mobile Number Validation to Shield UPI and E-Wallet Users From Soaring Fraud

The Department of Telecommunications has activated the much-awaited Mobile Number Validation (MNV) system under the new Telecom Cyber Security Rules, 2024.From today, no bank, UPI app, digital wallet, trading platform or e-commerce site can allow a mobile number to be registered, linked to payments, or used for high-value transactions unless it is first verified in real time that the person entering the number is its actual owner.

The change is simple but feels seismic. For years, fraudsters have exploited one glaring weakness: platforms accepted any mobile number as long as an OTP reached it, even if the SIM was fake, cloned, swapped or bought on the black market for ₹200. That allowed criminals to open hundreds of mule UPI IDs, impersonate victims on WhatsApp, take instant loans in strangers’ names, and vanish with the money.

MNV slams that door shut. Every time a user enters a mobile number, the app instantly checks with a secure DoT gateway that talks directly to telecom operators’ latest KYC records. Within milliseconds, it confirms:The SIM is registered in the user’s name
No duplicate or cloned SIM is active
The number is not flagged for fraud or suspicious activity

If any check fails, registration or the transaction is blocked automatically. No extra forms, no extra clicks for genuine users the entire process stays invisible.Early estimates from the Indian Banks’ Association and NPCI suggest the measure could slash UPI-related fraud by 60–80 % almost overnight, saving thousands of crores that were previously lost to fake IDs and unauthorised accounts.

For honest citizens, the relief is immediate: no more waking up to collection calls for loans you never took, no more discovering a stranger has linked your number to their Paytm wallet, and far fewer “blue-tick” WhatsApp scams. Even if someone manages to get hold of your OTP, they still can’t register your number anywhere meaningful.

Businesses have until February 2026 to fully integrate the MNV API, though most large players like PhonePe, Google Pay, Amazon, and major banks have already gone live. Non-compliance will invite penalties ranging from ₹5 crore to ₹25 crore per breach.

Privacy has been a talking point, but officials insist the system is deliberately minimal: platforms receive only a “Yes/No” response and an encrypted token; they never see Aadhaar numbers, addresses or call records. All communication is end-to-end encrypted, and independent audits are mandatory every year.

After losing more than ₹12,000 crore to digital payment fraud in the last two years alone, India has finally drawn a hard line in the sand. With Mobile Number Validation now live, owning a phone number actually means something again and for millions of Indians, that small technical fix feels like the strongest lock the digital world has ever had.

Signpost NewsDesk

Signpost News is an Imphal-based media house that focuses on delivering news and views from Northeast India and beyond.