The Reserve Bank of India (RBI) has advised all banks to integrate the Financial Fraud Risk Indicator tool developed by the Department of Telecom (DoT) to curb online fraudulent transactions, according to an official statement on Wednesday.
Banks and financial institutions can use the Financial Fraud Risk Indicator (FRI) in real time, which classifies mobile numbers based on their association with medium, high or very high risk of financial fraud.
The data is collected from various sources, including reporting on the Indian Cyber Crime Coordination Centre (I4C’s) National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and Intelligence shared by banks and financial institutions.
“DoT welcomes the RBI advisory issued on June 30, 2025, directing all scheduled commercial banks, small finance banks, payment banks, and co-operative banks to integrate the Financial Fraud Risk Indicator (FRI) developed by DoT into their systems,” the statement said.
Launched in May 2025 by DoT’s Digital Intelligence Unit (DIU), the system’s utility has already been demonstrated, with leading institutions like PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank actively using the platform.
“With UPI being the most preferred payment method across India, this intervention could save millions of citizens from falling prey to cyber fraud. The FRI allows for swift, targeted, and collaborative action against suspected fraud in both telecom and financial domains,” the statement said.
DoT called the RBI move a “watershed moment in the fight against cyber-enabled financial frauds” and a testament to the power of inter-agency collaboration in safeguarding citizens in India’s growing digital economy.
“It also underscores the strategic importance of automating data exchange between banks and DoT’s DIP through API-based integration, enabling real-time responsiveness and continuous feedback to further refine the fraud risk models,” the statement said.
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Published on July 3, 2025
