Outlook Explains | Why Did Zoho's Arattai Remove Its Username Feature?

The Centre's scrutiny of messaging platforms over username-based accounts has widened beyond WhatsApp. After serving notices to WhatsApp, Telegram and Signal over concerns that usernames could enable fraud and impersonation, homegrown messaging platform Arattai has announced that it will disable the feature to comply with what its founder described as a regulatory change.

The move has sparked questions about why Arattai is dropping a feature that many users saw as a privacy-friendly alternative to sharing phone numbers and what it could mean for India's digital ecosystem.

What Did Sridhar Vembu Announce?

Zoho co-founder Sridhar Vembu announced on X that Arattai would disable its username-based account feature, which allowed users to connect with others without revealing their phone numbers.

"We will be disabling the username based account feature in Arattai, to comply with the regulatory change," Vembu wrote.

Arattai, which was launched in 2021, gained significant attention late last year as a potential Indian alternative to WhatsApp amid growing conversations around using homegrown digital products.

While Vembu cited regulatory changes as the reason for removing usernames, Indian authorities have not banned the feature outright. Instead, the Ministry of Electronics and Information Technology (MeitY) has sought explanations from Meta, Telegram and Signal over whether username-based accounts could increase the risks of fraud, impersonation and phishing.

How Is Arattai Different From WhatsApp?

Arattai positions itself as an easy-to-use instant messaging app, with much of its appeal coming from its identity as an Indian-owned alternative to foreign messaging platforms.

The app includes several features that distinguish it from WhatsApp. Its "Pocket" feature functions as a personal cloud space where users can save messages, notes and media for later access across devices, eliminating the need to create a personal chat group for storage.

Unlike WhatsApp, which recently integrated Meta AI into the app without an option to disable it, Arattai currently does not include mandatory AI features.

It also offers an in-built Meetings feature, allowing users to start, join or schedule video meetings directly within the app, without requiring separate platforms such as Google Meet or Zoom.

For group conversations, Arattai includes a dedicated Mentions tab that collects every message in which a user has been tagged, making it easier to track important conversations.

The platform also highlights its ad-free experience, stating that user data is not used for commercial purposes and is stored in Indian data centres.

However, one key difference remains encryption. While Arattai's voice and video calls are end-to-end encrypted, its text messages are not yet fully end-to-end encrypted, unlike WhatsApp, where all personal chats are protected with end-to-end encryption.

What Regulatory Changes Prompted The Move?

The debate around usernames on messaging apps intensified this week after WhatsApp announced plans to introduce username-based accounts, allowing users to connect without sharing their phone numbers.

Soon after the announcement, the Ministry of Electronics and Information Technology issued a notice to Meta, directing WhatsApp to pause the rollout until consultations on the privacy and security implications of the feature were completed to the government's satisfaction.

The Centre said the feature could materially increase online fraud, phishing, digital arrest scams and impersonation attacks.

The government's scrutiny has since expanded beyond WhatsApp. According to a source cited by PTI, the IT Ministry has also sent notices to Telegram and Signal, both of which already support usernames, asking how they address concerns related to fraud and impersonation. The notice to Telegram also questioned why the platform should be allowed to retain the feature.

Neither Telegram nor Signal responded to requests for comment.

Against this backdrop, Vembu announced that Arattai would also remove its username-based accounts to comply with the evolving regulatory position.

Could Other Indian Apps Follow?

For now, Arattai is the only Indian messaging platform to publicly announce the removal of username-based accounts following the Centre's scrutiny. The government has not directed all platforms to disable the feature, nor has it formally prohibited usernames.

However, the development suggests that Indian messaging services may closely watch the government's consultations and regulatory stance. If concerns around fraud and impersonation translate into broader policy changes, other domestic platforms offering similar features may also review their products to remain compliant.

What Does This Mean For India's Digital Ecosystem?

The developments highlight the growing balancing act between user privacy, platform innovation and online safety in India's digital ecosystem.

Username-based accounts were designed to let users connect without sharing their phone numbers, offering an additional layer of privacy. At the same time, the government argues that the feature could make it easier for fraudsters to impersonate individuals and carry out phishing or digital arrest scams.

The Centre's engagement with WhatsApp, Telegram, Signal and now the response from Arattai indicate that messaging platforms may increasingly be expected to demonstrate how new features address security risks before they are rolled out or retained. How these consultations evolve could shape the future of messaging services and digital communication platforms in India.