RBI News! Reserve Bank of India advises this to banks to prevent cyber frauds, check what has RBI said in its advisory
New Delhi: Reserve Bank of India (RBI) has directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Department of Telecommunications’ (DoT) Financial Fraud Risk Indicator (FRI) into their systems. This directive is issued today, June 30, 2025 and is being considered as a Landmark Step in Cyber Fraud Prevention.
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What is “Financial Fraud Risk Indicator” and how will it help Banks to prevent Cyber frauds ?
The Financial Fraud Risk Indicator (FRI) developed by DoT’s Digital Intelligence Unit and launched in May 2025. It classifies mobile numbers based on their association with financial fraud risk as Medium, High, or Very High. This classification is fetched from reports 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.
The system enables real-time preventive action such as blocking suspicious transactions, issuing warnings to customers, or delaying high-risk payments. Banks and UPI apps like PhonePe, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank are already using the platform with positive results.
FRI is also supported by the Mobile Number Revocation List (MNRL), which flags numbers disconnected due to links with cybercrime, failed re-verification, or misuse. It’s API-based integration that allows banks to automate checks and send real-time risk updates to alert customers.
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By integrating FRI into banking systems, financial institutions can proactively safeguard customers and reduce cyber frauds in the banking sector. This move marks a new era of digital trust and security, reinforcing the Government’s broader Digital India vision. RBI is committed to maintain customers’ safety inthe financial system.
