TRAI Proposes New Format for OTP Messages to Combat Fraud

TRAI's Initiative Against OTP Fraud

In an effort to curb fraud related to one-time passwords (OTPs) sent via mobile, the Telecom Regulatory Authority of India (TRAI) is considering a new approach. The regulatory body aims to standardize the format of OTP messages sent by banks, online shopping platforms, and other companies. This initiative is expected to help users easily identify the source and purpose of the OTP they receive.

According to a report published on October 20, 2026, TRAI has already engaged in discussions with telecom companies regarding this proposal. A consultation paper may be released in the future, but for now, it remains a proposed measure. Details regarding the implementation timeline or mandatory regulations for all companies have yet to be disclosed.

Standardizing OTP Message Formats

Currently, different banks, apps, and online platforms send OTP messages in various formats. Some messages display the code directly on the screen, while others require users to open the message to view the information. This inconsistency can make it challenging for individuals to distinguish between legitimate and suspicious messages.

The proposed system would include specific information in a standardized format within OTP messages. This could encompass details such as the purpose of the OTP, the service or organization sending the message, and the validity period of the code. Such clarity is expected to assist users in understanding the messages and identifying potential scams.

Reducing the Risk of OTP Fraud

OTPs are commonly used for banking, digital payments, online shopping, and account logins. Cybercriminals often impersonate bank or trusted company employees to solicit OTPs from individuals. In some cases, they send fraudulent messages to confuse users.

If OTP messages follow a clear and uniform format, it may become easier for users to comprehend the purpose of the message. Additionally, reducing the risks associated with displaying codes on mobile screens without opening messages is also under consideration. However, merely standardizing formats will not guarantee the elimination of all forms of online fraud.

Expert Opinions on the Proposal

Experts have mixed views regarding this proposal. Some believe that a uniform format could help the general public easily identify genuine OTP messages. Conversely, others caution that fraudsters might replicate the standardized format. Therefore, alongside changing the message format, additional security measures will remain essential.

For digital safety, it is crucial that individuals do not share OTPs with unknown persons. If someone claims to be an official from a bank or government department and requests OTPs, PINs, or passwords over the phone, such information should not be disclosed.

Ongoing Efforts to Combat Cyber Fraud

The Department of Telecommunications and telecom companies are implementing various measures to prevent the misuse of mobile numbers and suspicious messages. These efforts include identifying fake mobile connections, analyzing suspicious numbers, and reviewing message templates for bulk SMS.

TRAI's proposal is seen as part of this broader initiative. If a clear and effective system for OTP message formats is established, it could provide additional support to individuals using digital services.

Will OTP Fraud Be Completely Eliminated?

Currently, there is no definitive answer to this question. While a standardized OTP message format may enhance awareness and make it easier to identify certain types of fraud, cybercriminals can adopt alternative methods. Therefore, users must remain vigilant rather than solely relying on regulatory changes.

At this stage, TRAI's plan is still in the discussion phase. Further details regarding the consultation paper and proposed regulations will clarify what the new format will entail, which services it will apply to, and the timeline for implementation.