If you operate in the financial sector in India, you already know how critical compliance with RBI and TRAI regulations is. RBI’s stringent oversight on customer communication has made it clear that financial institutions must be meticulous about customer consent—especially when it comes to promotional calls. But here’s the real question: Can a simple response to an app’s push notification qualify as valid consent under TCCCPR (Telecom Commercial Communications Customer Preference Regulations, 2018)?
The answer isn’t straightforward, and if you’re using notifications to drive customer engagement, you need to be cautious about regulatory intent. Let’s break it down.
Understanding TCCCPR’s Definition of Consent
TCCCPR explicitly defines “consent” as a customer’s clear and verifiable agreement to receive commercial communication from a specific sender for a specified purpose.
Moreover, consent must be recorded and maintained in the Distributed Ledger Technology (DLT) system for transparency and auditability.
This means that if a customer is on a Do Not Disturb (DND) list, your institution cannot call them for marketing purposes unless they have given explicit prior consent. But does this extend to push notifications and responses within your app?
Where Does a Push Notification Fit In?
TCCCPR governs telecommunication-based commercial communications, including SMS and voice calls. App-based notifications, however, fall outside its direct jurisdiction—which creates a regulatory gray area.
Since a push notification is an internal communication within your app, it is not subject to DND restrictions the way SMS and calls are. However, if the notification’s intent is to indirectly solicit consent for a call, you may still fall under regulatory scrutiny. TRAI and other regulatory bodies, including RBI, have, in the past, acted against organizations that attempted to bypass TCCCPR restrictions by shifting marketing outreach to alternative channels.
The Spirit, not just the Letter
- SEBI has penalized firms for “structured transactions” that technically follow the law but violate its spirit.
- RBI’s Stance on Digital Lending shows a similar pattern, where app notifications led to aggressive loan collections, leading RBI to intervene even though push notifications weren’t explicitly regulated.
- TRAI itself has previously tightened TCCCPR rules after detecting “clever workarounds” used to bypass DND lists (e.g., firms sending OTPs with marketing messages inside them).
Does Clicking a Notification Count as Consent?
Let’s say your customer receives a notification stating:
“Exciting banking updates await you! Tap to explore.”
Upon clicking, they log in to your app, where they see a promotional offer on fixed deposit (FD) rates. If they voluntarily click on the offer and opt to receive a call, can this be considered valid consent under TCCCPR?
The Regulatory Perspective: Explicit vs. Implicit Consent
TCCCPR differentiates between explicit and implicit consent:
- Explicit Consent must be actively and deliberately provided by the customer before receiving commercial calls. This means it must be registered in the DLT with clear parameters.
- Implicit Consent (e.g., engaging with an in-app offer) does not qualify as a valid form of consent for marketing calls under TCCCPR.
Thus, if the notification simply nudges the customer to log in, and they later consent to a call within the app, that consent is explicit and valid—but only if recorded in the DLT system. However, if the notification itself is seen as a disguised marketing attempt, regulators may question whether the approach is compliant.
Potential Risk of Regulatory Scrutiny
The spirit of TCCCPR is to prevent unsolicited marketing communication, regardless of the channel. If regulators perceive that your institution is using push notifications as a loophole to circumvent DND protections, they may take a stricter stance.
A key precedent is TRAI’s previous actions against businesses that embedded promotional messages inside transactional communication to bypass restrictions. The principle remains the same—if push notifications serve as a disguised form of marketing outreach, they could invite regulatory action in the future.
How to Ensure Compliance While Using App Notifications
So, how do you maximize customer engagement while staying compliant?
- Obtain Prior Opt-In for Push Notifications – During app onboarding, ask customers if they agree to receive marketing notifications. This should be a separate consent checkbox, not bundled with general terms and conditions.
- Keep Notifications Neutral and Non-Promotional – Instead of sending direct marketing messages, use general phrasing. For example, “Check out our new FD rates now!” is probably non-compliant phrasing. On the other hand, “Your banking insights are ready. Tap to view.” is more neutral and compliant.
- Capture Consent Explicitly Inside the App – If the customer clicks on an offer inside the app and agrees to receive a call, this consent must be separately recorded in the DLT, with details including:
- Customer’s identity
- Time and date of consent
- Purpose of the consent (e.g., call regarding FD rates)
- Ensure an Opt-Out Mechanism Exists – Customers should always have the option to disable promotional notifications from the app settings, reinforcing the voluntary nature of engagement.
Final Verdict: Is Clicking a Notification Enough for TCCCPR Compliance?
- No, if the notification itself is a disguised marketing attempt.
- Yes, if the customer voluntarily provides explicit consent within the app and that consent is recorded in the DLT.
As regulations evolve, financial institutions must proactively align with the spirit of TCCCPR, not just its technical wording. By embedding robust consent mechanisms into your app, you can ensure high engagement without regulatory risk—a win-win for both business and compliance teams.
