New Delhi: All Know Your Customer (KYC) documents for mobile connections will be digitised. This is among a slew of reforms in the telecom sector cleared by the Cabinet on Wednesday.
The reforms — 9 structural and 5 procedural — will impact telecom companies and mobile users, said Union minister Ashwini Vaishnaw.
“We all have mobile connections… for whatever connection it is, we have filled up some forms. All these forms are deposited in the warehouses and there are 300-400 crore forms in warehouses. In Digital India, there is no need for this paperwork. So all these will be digitised and going forward, there will be no physical KYC,” Vasihnaw stated.
?Self-KYC (App based) permitted.
?E-KYC rate revised to only One Rupee.
?Shifting from Pre- paid to Post-paid and vice-versa will not require fresh KYC.#TelecomReforms#CabinetDecisions pic.twitter.com/3hwL5ocusG— Ashwini Vaishnaw (@AshwiniVaishnaw) September 15, 2021
In a major relief for telecom companies like Vodafone Idea, which owe which owe the government large sums of money, the Cabinet approved a four-year moratorium on payment of statutory dues by telcos.
The companies will pay an interest rate of MCLR + 2% while the penalty has been completely scrapped.
✅Interest rates rationalized to SBI’s MCLR plus 2%
✅Interest compounded annually instead of monthly
✅Penalty and interest on penalty removed.#TelecomReforms#CabinetDecisions pic.twitter.com/MtUV4o7XXK— Ashwini Vaishnaw (@AshwiniVaishnaw) September 15, 2021
Following are some of the key reforms:
* Definition of AGR (adjusted gross revenue) has been rationalised. Non-telecom revenue of telcos has been excluded from payment of statutory levies
* Spectrum sharing made free
* 100% FDI through automatic route in telecom sector
* All KYC (know your customer) forms to be digitised
* No need for separate KYC to switch from post-paid to prepaid connection or vice-versa
* An auction calendar to be put in place for spectrum auction; auction to be held in last quarter of financial year
* 4G, 5G core network technology to be designed and manufactured in India.
* Four-year moratorium for payment of AGR dues for all telecom companies
* Moratorium will ensure significant cash flow for the companies without impacting revenue of the government
