Missed OTP, frozen finances: How to manage Indian SIM cards while abroad 

Experts say there is no legal issue with NRIs continuing to use Indian numbers abroad. However, the larger challenge lies in maintaining uninterrupted access and ensuring that financial records are properly updated after moving overseas.

Indian mobile numbers are still central to banking

“NRIs can continue to use Indian mobile numbers for banking access while living overseas, and there is no regulatory restriction that prevents this,” says Gautami Gavankar, President, Kotak Mahindra Bank Ltd.

According to Gavankar, much of India’s banking and financial ecosystem continues to rely on domestic mobile numbers for OTP authentication, transaction approvals, KYC updates and services such as UPI and investment platforms. While banks increasingly allow overseas numbers to be registered, Indian numbers still play a critical role in day-to-day access.

Gavankar says customers should avoid depending on a single mode of access. “The most effective approach is to keep the Indian mobile number active, register an international number where supported, and enable alternate authentication methods such as app-based or email-based verification,” she says.

OTP delays and SIM deactivation are common issues

Murali Vaidyanathan, Senior President & Country Head, Equitas Small Finance Bank says, “There are no RBI or telecom restrictions on this,” he says, though he notes that international roaming charges can be significantly higher than domestic tariffs.

According to him, OTP delays and delivery failures are among the biggest practical challenges NRIs face because authentication messages often pass through multiple telecom networks internationally. Another frequent issue is SIM deactivation, particularly for prepaid connections that are not recharged or used regularly.

Vaidyanathan says banks are gradually adapting to the needs of overseas customers by allowing overseas registered mobile numbers and introducing alternative verification systems. “Dual-factor authentication such as biometric verification with MPIN is allowed for low-risk transactions. App-based tokens and email OTPs are also being enabled in many cases,” he says.

However, certain services remain heavily dependent on Indian mobile numbers. Aadhaar verification through UIDAI systems currently works only with Indian numbers, while UPI access using international numbers is still limited to select countries such as the UAE, Singapore, UK, USA and Canada.

“Loss of access to a registered Indian mobile number may impact certain banking and financial services that rely on OTP-based authentication,” says Dheeraj Sanghi, Country Head – Retail Liabilities, Fee & Business Banking, YES BANK Limited. He adds that this can affect access to UPI services, password resets for digital banking channels, and services linked to KYC verification mechanisms such as CKYCR (Central KYC Registry). Certain Aadhaar-linked and account-verification processes may also require authentication through the registered mobile number.

The real risk is compliance, not the SIM card

For CA Sagar Soman, the larger issue is not where the OTP is received, but whether the individual’s financial profile has been correctly updated after becoming a non-resident.

“From a tax or FEMA perspective, merely using an Indian mobile number outside India is not the problem,” Soman says. “The real issue is whether the bank accounts, investment folios, demat accounts, PAN profile, KYC records and residential-status declarations linked to that number have been correctly updated after the individual became non-resident.”

He says many NRIs wrongly assume that smooth OTP access automatically means their compliance position is in order. “An OTP is only a key to the system. It is not a certificate of compliance,” he says.

According to Soman, once an individual becomes a non-resident, resident savings accounts generally need to be redesignated as NRO accounts under RBI rules. “The SIM card may still be Indian, but the financial identity behind it cannot remain resident if the person has become non-resident,” he says.

He adds that many operational issues surface only during important transactions such as property-sale repatriation, investment redemption or tax-return verification, when outdated KYC records, inactive numbers or incorrect residential status suddenly become obstacles.

Why NRIs need backup access systems

Adhil Shetty, CEO, Bankbazaar says the ideal time to organise banking access is before moving abroad rather than after a problem occurs. “The best time to sort this out is before leaving, not after a problem surfaces,” Shetty says. “Start with the SIM — a small periodic recharge is all it takes to prevent deactivation, and the cost is negligible compared to losing banking access entirely.”

According to him, maintaining both an Indian and overseas number creates an important safety net. “A dual-number approach works well in practice: one Indian number tied to banking, one local number for everything else,” he says.

Shetty also recommends reducing dependence on OTPs wherever possible by enabling app-based authentication and ensuring email IDs linked to banks remain updated. “Setting up app-based authentication, keeping an email ID current with the bank, and having net banking credentials accessible independently of the phone creates enough redundancy that a missed OTP does not become a crisis,” he says.

Keeping an Indian SIM active may still be necessary for Aadhaar-linked services and parts of the banking ecosystem, but experts stress that this should go hand-in-hand with updated KYC records, correct NRI account status, overseas contact details and alternative authentication methods. For NRIs, the Indian mobile number may remain the gateway to their finances but experts say the real protection lies in building multiple layers of access before problems arise.