RBI Advises Banks to Integrate DoT’s Cyber Fraud Prevention Measures
The Department of Telecommunications (DoT) has announced a significant step in combating cyber-enabled financial fraud with the Reserve Bank of India’s (RBI) recent advisory. Issued on June 30, 2025, the directive mandates all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to incorporate the Financial Fraud Risk Indicator (FRI) developed by DoT into their systems. This initiative marks a pivotal moment in enhancing the security of India’s digital economy, showcasing the effectiveness of collaboration among various agencies to protect citizens from financial crimes.
Understanding the Financial Fraud Risk Indicator
The Financial Fraud Risk Indicator (FRI) was launched by DoT’s Digital Intelligence Unit (DIU) in May 2025. It serves as a risk-based metric that categorizes mobile numbers based on their association with financial fraud risks, labeling them as Medium, High, or Very High. This classification is derived from data collected from multiple sources, including the Indian Cyber Crime Coordination Centre’s National Cybercrime Reporting Portal (NCRP) and inputs from banks and financial institutions. The FRI empowers banks, non-banking financial companies (NBFCs), and UPI service providers to prioritize their responses and implement additional protective measures when a mobile number is flagged as high risk.
To further enhance its effectiveness, the DIU regularly distributes a Mobile Number Revocation List (MNRL) to stakeholders. This list includes numbers that have been disconnected due to links with cybercrime, failed re-verification, or misuse, many of which are connected to financial fraud. By utilizing the FRI, financial institutions can make informed decisions to protect their customers and mitigate potential fraud.
Real-Time Applications of the FRI
Financial institutions can leverage the FRI in real time to implement various preventive measures. These include declining suspicious transactions, issuing alerts or warnings to customers, and delaying transactions that are flagged as high risk. The effectiveness of this system has already been demonstrated by leading institutions such as PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank, all of which actively utilize the FRI platform. Given that UPI is the most popular payment method in India, this initiative has the potential to protect millions of citizens from cyber fraud.
The FRI facilitates swift and targeted actions against suspected frauds, bridging the gap between the telecom and financial sectors. By enabling real-time responses, the FRI enhances the overall security framework of digital transactions in India.
Commitment to Cybersecurity and Digital Trust
The DoT is dedicated to supporting banks and financial institutions in their fight against cyber-enabled fraud through technology-driven, nationally coordinated solutions like the Financial Fraud Risk Indicator. This initiative signifies a new era of digital trust and security, aligning with the Government’s broader Digital India vision. The DoT continues to collaborate closely with RBI-regulated entities to streamline alert mechanisms, enhance fraud detection, and integrate telecom intelligence into banking workflows.
As more financial institutions adopt the FRI into their customer-facing systems, it is anticipated that this tool will evolve into a sector-wide standard. This evolution will reinforce trust among consumers, enable real-time decision-making, and bolster systemic resilience across India’s digital financial landscape. The ongoing commitment to cybersecurity is crucial as the nation navigates the complexities of an increasingly digital economy.
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