RBI-TRAI pilot to curb spam calls, messages for loans, credit cards

STRAP A new RBI-TRAI pilot brings relief from unwanted bank calls and messages. Consent will be required before promoting loans, credit cards, or financial products.

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In a major relief for telecom users, the Telecom Regulatory Authority of India (TRAI), in collaboration with the Reserve Bank of India (RBI), has launched a pilot project to curb spam calls and messages related to credit cards and personal loans from banks.

 

The move aims to bring in a formal and verifiable consent mechanism through a digital Consent Registration Function (CRF), starting with banks regulated by RBI. This will ensure that consumers are contacted only after giving their clear and recorded permission.

 

What does the pilot project mean for consumers?

·  Banks will now need to register and verify customers' consents digitally before sending promotional calls or messages.

 

·  Consumers will be able to see and revoke their consents anytime using SMS, websites, or mobile apps.

 

·  Notifications will be sent to users confirming any recorded consent and providing opt-out options.

 

How the new system will work?

·  The pilot will run for three months and will be conducted within a controlled regulatory sandbox.

 

·  Access providers will use Distributed Ledger Technology (DLT) to record, store, and update user consents.

 

·  Banks will submit both past and new consents onto this system and ensure transparency and compliance.

 

Users will receive SMS updates from short code ‘127xxx’ detailing:

 

·  Which entities have their consent

 

·  How to revoke it

 

·  Where to view all their active consents

 

Consumer data and privacy at the centre

TRAI has directed access providers to build simple, user-friendly interfaces and regularly inform users about their consent status. Audit mechanisms, data privacy safeguards, and clear revocation workflows are being mandated. Awareness campaigns will also be launched within 30 days to inform the public.

 

Once the pilot concludes, TRAI and RBI will evaluate its success and plan a phased rollout across other financial and commercial sectors.