However, many Indians are facing troubles with payments since yesterday as their OTPs are not getting delivered. This is disrupting many online and offline businesses who rely on digital payments.
is anyone else facing issues with receiving OTPs in India? Or is it just me, not receiving OTPs since yesterday ?
— abhishek (@abhishek_tri) March 9, 2021
Pathetic…still no otp…customer care not answering the phone… @ICICIBank @ICICIBank_Care
— Shashi Patel (@shashipatel123) March 9, 2021
The reason is India’s new SMS verification system. Telecom operators have started rolling out a blockchain-based Distributed Ledger Technology (DLT) that forces telemarketers to register, and avoid being identified as spam — and therefore blocked.. After registration, marketers have to compose and distribute messages that comply with pre-approved templates.
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Telecom operators will scrub these messages to check the content, and send it only to folks who have given their consent to receive texts from select companies. You can read more about India’s new SMS system here.
According to multiple reports, this new system started rolling out yesterday, but because many banks and financial entities failed to register themselves, customers were stuck in an OTP void.
DLT went live – for those who don't know , that's a India-wide blockchain based SMS senderid verification for SMS.
I'm hearing massive failure rates on all bank SMS. OTP and all auth is down.
— Sandeep Srinivasa (@sandeepssrin) March 8, 2021
No OTPs coming through for either Axis or Kotak netbanking – guess the DLT SMS issue is real.
Weirdly, Axis on-call OTPs aren't working either.
— Vinay Kesari (@vinaykesari) March 8, 2021
A report from the Economic Times noted that the delivery failure rate for OTPs was around 25% amongst top banks. That’s a worrying sign for both customers and banks.
Many officials from various telecom bodies told ET that operators had sent an intimation to banks and other principal institutions to register their SMS templates.
While this issue is getting resolved, banks and other financial entities should not heavily rely on SMS, and implement a fail-safe way to deliver OTPs through alternative means.
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