Bharti Airtel Limited has received a penalty notice of Rs 7,50,000 from the Department of Telecommunications (DoT) for alleged violations of subscriber verification norms. The telecommunications major disclosed this development under Regulation 30 of SEBI Listing Regulations on February 17, 2026.

Penalty Details and Background

The penalty notice was issued by the Department of Telecommunications, Andhra Pradesh LSA, following a Customer Application Form (CAF) audit conducted for November 2025. The DoT conducts periodic CAF audits to ensure telecom operators comply with licensing terms and conditions related to adequate verification of customers before enrolling them as subscribers.

Regulatory Compliance Requirements

Under the terms of its license agreement, Bharti Airtel is required to ensure adequate verification of customers before enrolling them as subscribers and comply with all instructions issued by DoT in this regard. The DoT's sample CAF audit for November 2025 allegedly found violations of terms and conditions with respect to subscriber verification norms under the License Agreement.

Company's Response and Financial Impact

Bharti Airtel has decided not to contest the penalty and will proceed with payment of the imposed amount. The company has stated that the maximum financial impact is limited to the extent of the penalty levied, which amounts to Rs 7,50,000.

Regulatory Disclosure

The disclosure was made pursuant to Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of SEBI Listing Regulations. Company Secretary and Compliance Officer Rohit Krishan Puri signed the disclosure, confirming that the information provided is true, correct, and complete to the best of the company's knowledge and belief.

This penalty represents a routine regulatory matter for the telecommunications operator, with the company choosing to resolve the issue promptly by accepting and paying the imposed penalty rather than engaging in a prolonged contestation process.

Bharti Airtel has officially announced the launch of its groundbreaking AI-powered solution to combat the growing threat of OTP-related banking frauds. The innovative Fraud Alert system represents a significant advancement in network-level security, designed to protect customers from sophisticated scamming tactics that exploit the urgency associated with One-Time Passwords. The announcement was made through an official press release dated February 11, 2026.

AI-Powered Real-Time Protection

The new system operates autonomously at the network level, using artificial intelligence to identify potentially risky situations involving banking OTPs. When fraudsters attempt to exploit customers during phone calls by requesting banking transaction OTPs, Airtel's technology intervenes with real-time fraud alerts.

How the System Works

The technology addresses a critical vulnerability where fraudsters exploit the urgency often associated with OTPs for everyday services like deliveries. These criminals dupe customers into sharing banking-transaction OTPs during phone calls, exposing their account savings to fraud risk. Airtel's AI-powered system detects when a bank OTP is requested during a potentially risky incoming call and immediately warns the customer about the potential risk of consenting to banking transaction OTP delivery while still on the call.

Leadership Commentary

Shashwat Sharma, Managing Director & CEO Airtel, India, emphasized the company's commitment to network security: "We are on a mission to make Airtel the safe network. While working towards this, we have realised that despite the foundational role played by One-Time Passwords (OTPs) in securing digital transactions, their efficacy is frequently being undermined by criminal tactics."

Sharma highlighted the solution's effectiveness: "Our newly developed, AI-powered, autonomous solution operates proactively at network level and is engineered to detect and intervene against fraudulent activity in real-time. Extensive trials have demonstrated a remarkable level of accuracy and impact in preventing the menace of such scams."

Building on Previous Security Initiatives

This launch builds upon Airtel's comprehensive approach to fraud prevention implemented over the past two years. The company has previously rolled out several AI-powered, technology-led safeguards including spam call warnings and malicious link-blocking capabilities to stop frauds at the source. While these measures have significantly reduced fraud on Airtel's network, the company recognized that fraudsters continue to exploit human vulnerabilities through impersonation and social engineering tactics, prompting the development of this advanced OTP protection system.

Rollout Strategy and Implementation

The Fraud Alert system is currently operational in Haryana, where it has undergone extensive testing. Airtel plans to expand this protection to its entire customer base within the next two weeks, ensuring comprehensive coverage across its network. This rapid deployment timeline demonstrates the company's commitment to providing immediate protection against evolving fraud tactics.

The combination of AI-driven intelligence and human judgment gives customers the crucial time needed to think, verify, and maintain control of their security, effectively closing the gap that scammers typically exploit in OTP-related frauds.