Important Update on TRAI Regulation: PE-TM Binding Chain Process in DLT
The Telecom Regulatory Authority of India (TRAI) has introduced new guidelines under the TCCCPR regulation to enhance transparency and accountability in commercial communication via SMS. These guidelines mandate that Principal Entities (PEs), Telemarketers (TMs), and Aggregators register on the Distributed Ledger Technology (DLT) platform. This ensures compliance with TRAI regulations and visibility across the SMS communication chain.
Key Updates and Deadlines
- Mandatory Registration Deadline:
All entities involved in SMS communication must complete their registration on the DLT platform by December 10, 2024, to avoid disruptions in message delivery.
- Disclosure of Communication Chain:
Principal Entities are required to disclose all associated Telemarketers, Aggregators, and Delivery Telemarketers involved in their SMS communication processes.
- PE-TM Chain Binding Applicability:
This requirement applies exclusively to DLT-based SMS communication targeting Indian customers.
- Critical Deadlines:
December 10, 2024: Final date for registration.
December 11, 2024: The scrubbing process for PE-TM binding goes live. SMSs from non-registered or unapproved Telemarketers will be rejected starting this date.
What Is PE-TM Binding on DLT?
PE-TM Binding is the mandated linking of PEs with their relevant TMs on the DLT platform. It is through this linking that all the commercial SMS communications traceable, secure, and compliant with TRAI.
One of the most innovative features in this field is the PE-TM Binding Chain Process. This is an advanced mechanism for the improvement of accountability and trust in DLT systems. Let’s discuss the process in detail and see why it is important for businesses and developers who are involved in the blockchain space.
Understanding the PE-TM Binding Chain Process
The PE-TM Binding Chain Process is an abbreviation for Public Entity-Transaction Mapping Binding Chain Process. This protocol is meant to create an immutable and secure link from public entities (PE) to the transactions (TM) that they trigger inside a DLT system. Traceability is ensured through identifiers and checkpoints within the blockchain, which prevent fraudulent actions.
In short, the PE-TM Binding Chain Process aims to achieve the following:
- Improve Transparency: Since every transaction is linked to a public entity, the process ensures that all activities in the ledger can be traced.
- Improve Accountability: The transactions of public entities are made accountable so that no malicious actor can bring the system to a halt.
- Ensures Compliance: The process is compliant with regulatory requirements since it has a clear audit trail.
How the PE-TM Binding Chain Works
The PE-TM binding chain process works as given below:
- Entity Registration: The public bodies must be registered on the DLT and allocated a unique identifier.
- Transaction Origination: If the public entity originates a transaction, its identification is encoded in the data of such a transaction.
- Verification: The transaction is verified through multi-layered verification to confirm its genuineness and compliance with set rules.
- Binding: If valid then the transaction will be merged with the public entity in an unbroken bond within the ledger through cryptographic means.
- Recording: The immutable transaction is recorded in the blockchain for both tamper proofing and easy auditing.
- Compliance and Scrubbing:From December 11, 2024, any SMS initiated by unapproved or unregistered Telemarketers will be rejected during the scrubbing process.
The Significance of This New Rule
The PE-TM Binding Chain process will be the first one to realize a safer and regulated DLT ecosystem. Here’s why it matters:
- Anti-cheating mechanisms
It becomes difficult for the bad actors to manipulate the ledger because public entities need to bind their transactions using unique identifiers. It enables any unauthorized action to be traced and easily mitigated.
- Regulatory Alignment
There is a rising need by governments and regulatory bodies for blockchain systems to be transparent. PE-TM Binding Chain Process meets the expectations; hence, organizations find it easy to comply with anti-fraud and anti-money laundering regulations.
- Increased Trust
It has become a critical aspect of the finance, healthcare, and supply chain management industries, which increases trust as every transaction is linked to an entity that has been verified, thus reducing ambiguity and risk.
Consequences of Non-Compliance
Failure to register Telemarketers or complete the PE-TM binding process by the stipulated deadlines will result in the rejection of SMS communications from December 1, 2024. This can lead to significant disruptions for businesses relying on SMS for customer engagement, marketing, or transactional updates.
Final Thoughts
The PE-TM Binding Chain process is a vital step toward a more transparent and secure SMS ecosystem in India. Principal Entities must act swiftly to complete their registrations and declare their Telemarketers on the DLT platform before the November 30, 2024, deadline. It tackles some of the key challenges that bar full transparency and accountability within the transactions by public entities. Thus, it brings a sense of security to the more trusted and compliant blockchain system. However, implementing such technology might take lots of work; its payback period to industries, as well as the regulators, makes the effort worthwhile.
