The Reserve Bank of India has directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) devised by the Department of Telecommunications into their systems, in a landmark move to curb cyber-enabled financial fraud.
Launched in May 2025 by the DoT’s Digital Intelligence Unit, the FRI assesses mobile numbers and categorises them into Medium, High or Very High fraud risk based on inputs from the National Cybercrime Reporting Portal, DoT’s Chakshu platform, and intelligence from banks and financial institutions.
The alert system also includes a regularly updated Mobile Number Revocation List identifying numbers disconnected due to cybercrime or misuse. Banks and NBFCs can use the FRI in real time to decline suspicious transactions, issue customer alerts, or defer transactions flagged as high-risk.
Major players like PhonePe, PNB, HDFC, ICICI, Paytm, and India Post Payments Bank have already adopted the system. With UPI remaining India’s dominant payment mode, widespread FRI adoption is expected to protect millions of users.
The inter-agency initiative signifies a new era of digital trust and security under the Digital India vision, enabling API-based, real-time data exchange between telecom and banking sectors.
As more institutions incorporate FRI into customer-facing systems, it is expected to set a new sector-wide standard, boosting real-time fraud detection, alert mechanisms, and overall resilience across India’s digital financial ecosystem.
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