TRAI’s Blockchain Spam Blocking System Disrupts UPI Payments, Bank OTPs

India’s telecom regulator has suspended the implementation of a system that helps keep a check on fraudulent and fake SMSes 

In February, telcos were asked to institute a new blockchain-based system to keep track and verify commercial SMSes sent by telemarketers 

However, the system caused disruptions in OTP authentication services prompting TRAI to suspend the new system for seven days

The telecom regulatory authority of India (TRAI) today issued directions to suspend operations of a system that keeps check on fraudulent and fake SMSes after it caused massive disruptions in UPI payments.  

The implementation of the blockchain system has been suspended for a period of seven-days after discrepancies were found in the onboarding process of PEs, TRAI said in a notification on Tuesday.

“It has been observed that some of the principal entities have not fulfilled the requirements as envisaged in Telecom Commercial Communications Customer Preference Regulations, 2018 (TCCCPR, 2018)….

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