TRAI and RBI Launch Pilot to Curb Spam Loan and Credit Card Calls with Digital Consent System
In a joint move to tackle the persistent problem of spam calls related to loans and credit cards, the Telecom Regulatory Authority of India (TRAI) and the Reserve Bank of India (RBI) have announced a digital consent-based pilot project.
New Delhi: In a joint move to tackle the persistent problem of spam calls related to loans and credit cards, the Telecom Regulatory Authority of India (TRAI) and the Reserve Bank of India (RBI) have announced a digital consent-based pilot project. This new initiative aims to ensure that promotional banking messages and calls reach only those consumers who have provided prior consent.
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Key Objective: Consumer Consent for Promotional Calls
Under this pilot program, telecom service providers (TSPs) will collaborate with banks to establish a secure consent management system. The aim is to bring transparency and user control to commercial communication in India. The new regulations mandate:
- Digital registration of consent for commercial communication
- Verification of consent before sending any promotional SMS or calls
- Integration of banks and telecom operators into a unified consent ecosystem
Past Measures Against Spam Not Enough
While TRAI has taken steps previously—like allowing complaints against unregistered telemarketers and disconnecting spam-linked telecom resources—verifying offline consents remained problematic. The digital system aims to eliminate ambiguities, making consent-based outreach more secure and accountable.
Why the Banking Sector Is Prioritised
Given the rise in financial fraud through spam calls and SMS, the banking sector has been prioritised for the first phase. As per the Ministry of Communications:
“Given the sensitivity of banking transactions and cases of financial fraud through spam calls, the banking sector has been prioritised for the first phase of implementation.”
How the Digital Consent System Will Work
✅ Three-Month Regulatory Sandbox Pilot
The project will be implemented under a three-month controlled regulatory sandbox, to test real-world functionality, user response, and system scalability.
✅ DLT-Based Consent Tracking
The system will use Distributed Ledger Technology (DLT) to:
- Record and track consumer consents
- Store and update consent in real-time
- Prevent unauthorized commercial messaging
✅ Bank Responsibilities
Banks are required to:
- Digitally register all existing and new consents
- Upload consents into the secure TSP-managed digital framework
- Send communications only after consent verification
What It Means for Consumers
- More control: Users can view, revoke, or manage consents through SMS, websites, or mobile apps.
- Transparency: Every new consent will trigger an instant confirmation message with opt-out instructions.
- Secure communication: All promotional messages will be sent only after valid consent is verified.
New SMS Codes for Better Identification
As part of this initiative, users will receive SMS alerts from the ‘127xxx’ code series, containing:
- Names of the entities holding their consent
- Easy opt-out options
- Links to view all active consents
Numbering Series to Combat Financial Fraud
In January, the RBI mandated banks to use:
- ‘1600xx’ series for transactional communication
- ‘140xx’ series for promotional communication
This segregation is designed to help users easily distinguish between genuine and spam calls. In June, SBI also issued a public advisory, confirming that calls from +91-1600 numbers are secure and used only for service and transaction-related updates.
Future of Consent-Based Communications
The TRAI-RBI initiative sets the stage for a nationwide digital consent ecosystem, aiming to bring relief to users plagued by spam calls and unwanted banking promotions. Once the pilot phase concludes successfully, the system is expected to be scaled sector-wise, impacting other industries like insurance, telecom sales, and more.
