Industry Odisha Bureau, Oct 20: TRAI is weighing a single OTP format for banks and apps to curb scams. It could aid recognition, but experts warn fraudsters may simply copy it.
The Telecom Regulatory Authority of India (TRAI) is exploring a plan to standardise OTP messages. One-time passwords (OTPs) are now routine in online banking and shopping. The aim is to curb scams by making genuine codes easier to spot.
Two people aware of the talks said TRAI has met telecom operators several times. One of them said a consultation paper is also expected. No final rule has been announced.
OTP messages differ widely from one company to another. Some show the code on the lock screen, while others hide it. Under the plan, messages could state the sender, the purpose and the code’s validity. A common layout could also keep codes out of notification previews. That would depend on actual message design and phone settings.
Home affairs ministry data show financial fraud complaints soared from 262,000 in 2021. They reached 2.402 million in 2025 on the national cybercrime portal. Amounts involved jumped from ₹551 crore to ₹22,495 crore. The data, however, do not separately identify OTP-related fraud.
Not everyone is convinced. Satya N. Gupta, a former TRAI principal adviser, called it “an unnecessary exercise”. He added that it would do no harm if users benefited. Gupta said content changes would not require major system overhauls. But he warned TRAI against micromanaging OTP digits, citing compliance costs and technical hurdles. He also said users must stay vigilant.
Faisal Kawoosa, chief analyst at research firm Techarc, sees clear gains for new users. A familiar layout would spare them from learning many confusing formats. Yet he stressed the format must carry features users can reliably verify. A uniform look alone cannot prove a message is genuine.
Copying remains the biggest risk. Scammers could replicate a public template easily. Kawoosa also doubted whether foreign companies would adopt an India-specific format. Some firms are shifting OTPs to WhatsApp, which covers many countries through one provider.
Senders must already register message templates with telecom operators. Messages must pass through registered telemarketers and match approved templates before delivery. The new proposal could add a common structure on top of these controls.
Operators have added their own safeguards. Airtel runs an OTP fraud alert system. Jio and Vodafone Idea have rolled out wider anti-spam and scam protection tools. TRAI and the Cellular Operators Association of India did not respond to queries. The association represents Airtel, Jio and Vodafone Idea.
The Department of Telecommunications (DoT) runs separate detection systems. DoT says its AI and facial recognition tool, ASTR, disconnected over 8.2 million fraudulent connections. Its Financial Fraud Risk Indicator (FRI) ranks mobile numbers by likely fraud links. It says FRI averted suspected losses above ₹5,000 crore over 15 months.
A uniform OTP format may help users spot genuine messages. But it can only curb scams if it remains hard to fake.
