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RBI Directs All Banks to Adopt DoT’s Financial Fraud Risk Indicator (FRI) to Curb Cyber Frauds – June 2025.

Banking & Finance | Dated: 05 Jul 2025

On June 30, 2025, the Reserve Bank of India (RBI) issued a directive to all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, Non-Banking Financial Companies (NBFCs), and Co-operative Banks to adopt the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT).

🎯 Key Highlights:

  • - The Financial Fraud Risk Indicator (FRI), launched in May 2025 by DoT’s Digital Intelligence Unit (DIU), assesses mobile numbers as Medium, High, or Very High risk based on inputs from the National Cybercrime Reporting Portal (NCRP), DoT's Chakshu platform, and intelligence from banks and telecom providers.
  • - The system uses API-based integration with DoT’s Digital Intelligence Platform (DIP) to enable real-time fraud detection. Banks can now block suspicious transactions, delay high-risk payments, and send customer alerts, ensuring rapid containment of potential fraud.
  • - Leading financial entities including PhonePe, HDFC Bank, ICICI Bank, Punjab National Bank, Paytm, and India Post Payments Bank have already integrated FRI, demonstrating the tool’s effectiveness in reducing fraud risks within the Unified Payments Interface (UPI) ecosystem.

💡 Other Important Facts:

  • (i) The RBI's directive underscores the strength of inter-agency cooperation between RBI and DoT. This move marks a watershed moment in India’s strategy to build digital trust, aligning with the Digital India vision and aiming to consolidate India’s defences against cyber-enabled financial fraud.
  • (ii) The directive covers a range of institutions: Scheduled Commercial Banks, Small Finance Banks, Payments Banks, Co-operative Banks, and NBFCs, effectively extending real-time fraud detection across India’s complete digital finance value chain.
  • (iii) DoT’s DIU also maintains a Mobile Number Revocation List (MNRL) featuring numbers flagged for cybercrime links or SIM misuse. The FRI represents a living platform, continuously updated to adapt to evolving fraud tactics while maintaining compliance with India’s digital security mandates.

📚 Test Your Knowledge:

Recently, which organization directed all banks, NBFCs, and UPI platforms to use the Financial Fraud Risk Indicator (FRI)?

Correct Answer: Reserve Bank of India

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai