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New SMS Regulations to Send SMS in India

New SMS Regulations to Send SMS in India

Profile Headshot of Mehak Dhingra
Mehak Dhingra

3
mins read

May 16, 2024

New SMS Regulations to Send SMS in India

Key Takeways

  1. New SMS regulations were needed to combat spam, unsolicited texts, phishing attempts, AIT and other SMS based cybercrimes
  2. The old and new regulations differ on multiple parameters like header and template, message categories, customer consent, preference flexibility etc.
  3. DLT is at the core of new regulations. It enhances security, confedentiality and traceability in SMS messages being sent
  4. New SMS regulations have multiple benefits for senders like reduced spam, clear sender identification, personalized message control etc.
  5. Innovation in SMS based solutions, transparency and accountability with personalized experience are some elements of the future of SMS in India

The Indian telecommunications landscape has witnessed a significant transformation in recent years, particularly in the realm of bulk SMS services. Amidst the growing concerns over unsolicited and fraudulent text messages, the Telecom Regulatory Authority of India (TRAI) has introduced a comprehensive set of regulations aimed at safeguarding consumer interests and promoting ethical practices within the bulk SMS industry.

What is the Need for New Regulations?

  1. Despite the availability of Do Not Disturb (DND) activation options and the implementation of measures to combat spam, the issue of receiving unsolicited and unwanted SMS messages has continued to plague Indian consumers.  
  2. Customers have remained victims of unsolicited texts, unwanted SMS, and phishing attempts, even after activating DND services.
  3. Cybercrimes in the form of SMS phishing, intercepting OTP SMS messages, AIT etc. have also increased. The complaints on NCRP rose by 61% in 2023.  

Difference Between Old and New SMS Regulations

Infographic Showing Differences Between Old and New SMS Regulations by Message Central.

The Role of Distributed Ledger Technology (DLT)

At the core of the new TRAI regulations is the implementation of Distributed Ledger Technology (DLT), commonly known as blockchain.  
This innovative technology serves as the foundation for managing the entire bulk SMS ecosystem, ensuring a secure and transparent platform for all stakeholders.

Under the revised guidelines, every individual or business entity, including telemarketers, must complete their DLT registration. This interconnected framework, there is linkage among all five entities, which are:-

  1. Individual/Business,
  2. Telemarketer,  
  3. Telecom Operator,  
  4. TRAI, and  
  5. Consumers

It enhances security, confidentiality, and traceability within the SMS communication network.

Benefits of New TRAI Regulations to Consumers

The implementation of the new TRAI regulations has brought about several benefits for consumers, including:

  1. Reduced Spam: The stringent guidelines and real-time filtering mechanisms have significantly reduced the incidence of unsolicited and unwanted SMS messages. This provides a better SMS communication strategy.
  2. Clear Sender Identification: With the mandatory registration of headers and templates, consumers can now easily identify the source of the SMS they receive, enhancing trust and transparency.
  3. Personalized Message Control: Customers now have the ability to control the messages they receive, including the option to specify time frames and opt-in/opt-out preferences.
  4. Enhanced Security: The adoption of Distributed Ledger Technology (DLT) has strengthened the overall security of the SMS communication network, deterring fraudulent activities and protecting consumer data.
    Some service providers like Message Central also enable uses cases like OTP SMS without the need for DLT registration. As a business you can leverage the service to ensure a smooth user onboarding experience.  
  5. Efficient Complaint Resolution: The streamlined complaint management system ensures that customer grievances are addressed promptly, with strict penalties imposed on violators.

The Future of Bulk SMS in India

With the implementation of the new TRAI regulations, coupled with the adoption of Distributed Ledger Technology (DLT), there are a few key emerging trends: -

  1. Increased Transparency and Accountability: The DLT-based framework will continue to enhance transparency and accountability within the bulk SMS ecosystem or mass texting, deterring fraudulent activities and instilling greater trust among consumers.
  2. Personalized Customer Experience: Consumers will experience a more personalized and controlled communication environment, with the ability to tailor their preferences and receive messages that align with their needs and preferences.
  3. Improved Compliance and Regulatory Oversight: The stringent regulations and real-time monitoring mechanisms will drive businesses to maintain strict compliance, ensuring a more ethical and regulated bulk SMS industry even for SMS API based providers.
  4. Innovation in SMS-based Solutions: The new regulatory landscape may spur innovation, as businesses explore creative ways to leverage SMS-based communication within the confines of the updated guidelines, catering to the evolving needs of consumers and enterprises.
  5. Collaboration and Interoperability: The increased interoperability between telecom service providers will foster collaboration and streamlined operations within the bulk SMS industry, leading to more efficient and reliable services.

As the Indian telecommunications landscape continues to evolve, the new TRAI regulations and the integration of Distributed Ledger Technology have set the stage for a more secure, transparent, and consumer-centric bulk SMS ecosystem. By embracing these changes and adapting their practices accordingly, businesses can thrive in this new era of SMS communication, while ensuring the protection of consumer interests.

Frequently Asked Questions

How do I choose the right OTP service provider?

When selecting an OTP SMS service provider, focus on:

  • Delivery reliability and speed
  • Global coverage and local compliance
  • Multi-channel support and fallback
  • Ease of integration
  • Pricing transparency

The right provider should not just send OTPs but ensure they are delivered consistently across regions and networks.

Not all OTP SMS service providers are built the same.

Some optimize for cost, others for flexibility but very few balance delivery reliability, global coverage and ease of use. And that balance is what actually impacts whether your users receive OTPs on time.

If OTP is critical to your product, focus on:

  • reliable delivery (not just sending)
  • multi-channel fallback
  • scalability across regions

Try It for Yourself

Why is multi-channel OTP important?

Relying only on SMS can lead to failed verifications due to:

  • network issues
  • telecom filtering
  • device limitations

Multi-channel OTP systems (SMS + WhatsApp + voice) improve success rates by automatically retrying through alternative channels if one fails.

What is the best OTP SMS service provider in India?

Some of the commonly used OTP SMS service providers in India include MSG91, Exotel and 2Factor.

That said, India has additional challenges like DLT compliance and operator filtering. Platforms that handle these internally while also offering fallback options tend to provide more consistent OTP delivery.

Which is the cheapest OTP service provider?

Providers like Fast2SMS and 2Factor are often considered among the cheapest OTP service providers, especially in India.

However, lower pricing can come with trade-offs such as:

  • lower route quality
  • higher delivery delays
  • limited fallback options

For mission-critical OTP flows, reliability often matters more than just cost.

Which is the best OTP service provider in 2026?

The best OTP service provider depends on your use case.

  • For global scale and flexibility: Twilio, Infobip
  • For cost-effective APIs: Plivo
  • For India-focused SMS OTP: MSG91, Exotel

However, platforms like Message Central stand out by balancing global coverage, multi-channel fallback and ease of deployment, making them suitable for businesses that prioritize delivery reliability.

What is an OTP service provider?

An OTP service provider enables businesses to send temporary verification codes to users via channels like SMS, WhatsApp or voice to authenticate logins, transactions or sign-ups.

Modern OTP SMS service providers go beyond just sending messages, they ensure reliable delivery using optimized routing, retries and sometimes multi-channel fallback.

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