The Department of Telecommunications (DoT) welcomes the Reserve Bank of India’s (RBI) advisory issued on June 30, directing all Scheduled Commercial Banks, Small Finance Banks, Payments Banks and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) developed by DoT into their systems.
This major step is expected to strengthen efforts to curb cyber-enabled financial frauds and boost collaboration between key agencies to protect citizens in the expanding digital economy. The integration will automate data exchange between banks and DoT’s Digital Intelligence Platform (DIP) through secure API-based systems, allowing for real-time fraud risk checks and continuous updates.
What is the Financial Fraud Risk Indicator and How Will It Help?
Launched in May 2025 by DoT’s Digital Intelligence Unit (DIU), the Financial Fraud Risk Indicator is a risk-based tool that classifies mobile numbers as Medium, High or Very High risk based on data from the National Cybercrime Reporting Portal, DoT’s Chakshu platform and intelligence inputs from banks and financial institutions.
Using the FRI, banks can take immediate preventive steps such as declining suspicious transactions, alerting customers, or delaying high-risk transactions. DoT’s DIU also shares a Mobile Number Revocation List with stakeholders, which includes numbers disconnected due to links with cybercrime or misuse.
The system is already being used by major institutions including PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm and India Post Payments Bank. With UPI being widely used across India, the wider adoption of FRI is expected to protect millions of users from online fraud.
DoT has reiterated its commitment to support banks and financial institutions with technology-driven, coordinated solutions like the FRI. The move aligns with the Government’s Digital India vision and aims to strengthen digital trust, improve fraud detection and enhance resilience across the financial ecosystem.
