In a major step towards strengthening cybersecurity in banking, the Reserve Bank of India (RBI) has directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT). The advisory marks a significant move in India’s efforts to prevent digital financial fraud.
The FRI, launched in May 2025 by the DoT’s Digital Intelligence Unit (DIU), is a system that classifies mobile numbers based on their risk of being involved in financial fraud. Each number is rated as Medium, High, or Very High risk, based on data gathered from platforms like the National Cybercrime Reporting Portal (NCRP), the DoT’s Chakshu platform, and intelligence shared by banks and financial institutions.
By integrating this indicator, banks and payment platforms will be able to identify risky mobile numbers in real time. This will allow them to take action such as issuing warnings, delaying or blocking transactions, and notifying customers of possible threats. The goal is to stop fraud before it happens by using clear risk signals linked to mobile numbers.
Several leading institutions—including HDFC Bank, ICICI Bank, Punjab National Bank, PhonePe, Paytm, and India Post Payments Bank—are already using the FRI to screen for suspicious activity. These early adopters have shown how the system can help reduce fraud risk, especially with the growing use of UPI (Unified Payments Interface) for everyday transactions.
The FRI also links to the Mobile Number Revocation List (MNRL), which includes numbers disconnected due to suspected cybercrime, misuse, or failed verification. Sharing this list helps banks and digital platforms avoid high-risk numbers when verifying customer identity or processing payments.
The integration of FRI is made possible through API-based systems that allow automated, real-time data sharing between the banks and the DoT’s platforms. This setup ensures quick action and ongoing updates to make fraud detection faster and more accurate.
The DoT has committed to continue working with RBI-regulated institutions to improve digital safety. This partnership aims to build trust, protect users, and support India’s Digital India goals by making online financial systems safer for everyone. As more banks and financial companies adopt FRI, it is expected to become a key tool in defending against cyber fraud across the country.
