Rbi Pushes Banks To Adopt Dot’s Financial Fraud Risk Indicator To Tackle Cyber Threats

In a important measurement toward bolstering India’s defence against cyber-enabled financial frauds, nan Reserve Bank of India (RBI) has issued an advisory directing each Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to merge nan Department of Telecommunications’ (DoT) Financial Fraud Risk Indicator (FRI) into their systems. Issued connected June 30, 2025, nan directive is group to reshape really financial institutions attack fraud prevention successful India’s fast-expanding integer economy.

“This is simply a watershed infinitesimal successful nan conflict against cyber-enabled financial frauds and a testament to inter-agency collaboration,” nan charismatic merchandise stated. “It underscores nan strategical value of real-time, automated information speech betwixt banks and DoT’s Digital Intelligence Platform done API-based integration.”

The Telecom Department introduced nan Financial Fraud Risk Indicator (FRI) successful May 2025, aiming to alteration enhanced intelligence sharing betwixt telecom authorities, banks, UPI work providers, and financial institutions. It marks a awesome stride toward combating cyber fraud and financial crime by fostering a unified, technology-led approach.

“FRI allows for swift, targeted, and collaborative action against suspected frauds successful some telecom and financial domains,” nan merchandise stated. “It bridges important gaps betwixt telecom information and financial assemblage vigilance.”

Explaining nan mechanics of nan FRI, nan DoT clarified that it is simply a risk-based metric designed to categorize a mobile number into 1 of 3 consequence categories: Medium, High, aliases Very High, depending connected its relation pinch financial fraud activities.

It includes reports from nan Indian Cyber Crime Coordination Centre’s National Cybercrime Reporting Portal (NCRP), intelligence from DoT’s ain Chakshu platform, and information shared by banks and financial institutions.

The FRI empowers banks, non-banking financial companies (NBFCs), and UPI work providers to return proactive measures erstwhile a mobile number is flagged arsenic precocious risk. Financial institutions tin utilize FRI insights successful existent clip to artifact suspicious transactions, rumor alerts to customers, aliases hold definite financial operations until further verification is completed.

Already, salient institutions specified arsenic PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank person started integrating nan FRI into their operational workflows.

“With UPI now nan preferred mode of integer payments successful India, nan stakes are incredibly high,” nan merchandise noted. “The FRI brings precision and velocity to fraud detection, helping forestall losses earlier they occur.”

In summation to nan FRI, DoT routinely updates stakeholders done its Mobile Number Revocation List (MNRL), which lists numbers disconnected owed to links pinch cybercrime, grounded re-verification processes, aliases misuse. Many of these numbers are intimately tied to financial fraud activities.

“The Financial Fraud Risk Indicator is much than conscionable a technological innovation—it’s poised to go a caller modular for integer spot and information successful India,” nan merchandise added. “It aligns seamlessly pinch nan Government’s broader Digital India vision.”

As much financial institutions merge FRI into their systems, experts expect it evolving into a sector-wide benchmark, enabling faster decision-making, reducing risks, and strengthening nan resilience of India’s integer financial architecture.