Synopsis : The Reserve Bank of India has directed all banks to integrate the DoT’s Financial Fraud Risk Indicator system for real-time detection and prevention of cyber-enabled financial fraud. This move aims to strengthen India’s digital financial ecosystem by enabling instant identification and blocking of high-risk transactions.
In a significant step to curb the rising menace of cyber-enabled financial fraud, the Reserve Bank of India (RBI) has instructed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to adopt the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT). The directive, issued on June 30, 2025, marks a decisive shift towards a tech-driven, nationally coordinated fraud prevention framework.
The FRI system allows banks to classify mobile numbers in real time based on their risk levels—medium, high, or very high—derived from data on the National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and intelligence shared by financial institutions. This enables banks to implement immediate protective measures, such as declining suspicious transactions, issuing customer alerts, or delaying high-risk transactions to prevent financial fraud.
The system is further strengthened by the Mobile Number Revocation List (MNRL), shared by the DoT’s Digital Intelligence Unit, which lists numbers disconnected due to cybercrime links or misuse. Through API-based integration with the Digital Intelligence Platform, banks can automate fraud checks seamlessly within their transaction flows, allowing for real-time actions and ongoing data-driven improvements in fraud risk models.
Early adopters, including HDFC Bank, ICICI Bank, Punjab National Bank, India Post Payments Bank, PhonePe, and Paytm, have already demonstrated the efficacy of FRI in mitigating fraud and protecting customers in real time. By facilitating focused, prompt, and coordinated action, the system not only protects individuals but also boosts confidence in India’s digital banking infrastructure.
As cybercrime methods evolve, initiatives like the FRI are poised to become industry benchmarks, equipping banks and financial institutions with advanced tools to detect, prevent, and respond to fraud dynamically. With RBI’s push for broader adoption, the FRI is set to redefine fraud prevention standards, ensuring India’s digital financial ecosystem remains secure and resilient.
Disclaimer : This article is for informational purposes only and does not constitute financial or legal advice. Readers should verify details independently before making financial decisions.
