You might have to prove your identity before topping up your phone credit in India

In India, people may soon be asked to prove their identity before topping credit to their pay as you go phone.

In a move to fight digital fraud, the country’s Supreme Court has asked the government to make it mandatory for prepaid mobile phone subscribers to disclose their identity before adding refilling credit to their account.

A bench headed by Chief Justice of India JS Khehar made the announcement Monday addressing a plea brought to the court. It has given the government a year to implement the program in a phased manner.

The bench added that new mobile subscribers would be required to fill up Aadhaar-based e-KYC (know your customer) forms to ensure correct identity. It’s not clear if the court also wants existing subscribers to comply with the new directive.

Aadhaar is India's biometric identity program that stores citizens' iris and fingerprint scans apart from other identity details. Over a billion Indian citizens have an Aadhaar card, according to the government.

According to estimates, more than 90 percent of India's billion mobile phone connections are prepaid. The PIL filed by Lokniti Foundation claimed that about 50 million SIM cards in India are unverified.

Indian laws warrant carriers to activate SIM cards only after proper verification process is followed, citing security concerns. Re-verification while adding credit to the number would allow the government to ensure that the SIM card is with the rightful owner of the account, the petitioner said.

The court’s move could impact India's telecom carriers, who could witness a drop in its subscriber base even as they try to operate in one of the world's cheapest tariff plans and cut-throat competition that results in subscribers floating from one carrier to another.

It remains to be seen, however, how the ruling is implemented for users who top up their accounts using online services.