Banks advised to adopt fraud risk indicator
The Reserve Bank of India (RBI) has already issued an advisory last month to this effect, directing all scheduled commercial banks, payments banks and co-operative banks to integrate FRI developed by DoT into their systems, the official, who did not wish to be named, said.
In a statement issued on Wednesday, the ministry of communications welcomed RBI's directive. 'This is 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 said. The DoT is an arm of the ministry.
The system is of strategic importance of automating data exchange between banks and DoT's digital intelligence platform DIP through API-based integration, enabling real-time responsiveness and continuous feedback to further refine the fraud risk models, it said.
'The system's utility has already been demonstrated with leading institutions such as PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank actively using the platform,' the statement said.
With UPI being the most preferred payment method across India, this intervention could save millions of citizens from falling prey to cyber fraud, it said. The FRI allows for swift, targeted, and collaborative action against suspected frauds in both telecom and financial domains.
FRI, launched in May 2025 by the Digital Intelligence Unit (DIU) of DoT, is a risk-based metric that classifies a mobile number to have been associated with medium, high, or very high risk of financial fraud. This classification is an outcome of inputs obtained from various stakeholders including reporting on Indian Cyber Crime Coordination Centre's (I4C) National Cybercrime Reporting Portal (NCRP), DoT's Chakshu platform, and intelligence shared by banks and financial institutions, it said.
'It empowers stakeholders-especially banks, non-banking finance companies (NBFCs), and unified payment interface (UPI) service providers- to prioritise enforcement and take additional customer protection measures in case a mobile number has high risk,' it said. The Digital Intelligence Unit regularly shares the Mobile Number Revocation List (MNRL) with stakeholders, detailing numbers disconnected due to cybercrime links, failed re-verification, or misuse—many of which are tied to financial frauds, it added.
This move marks a new era of digital trust and security, reinforcing the government's broader 'Digital India' vision, it said. As more institutions adopt FRI into their customer-facing systems, it is expected to evolve into a sector-wide standard, reinforcing trust, enabling real-time decision-making, and delivering greater systemic resilience across India's digital financial architecture, it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
34 minutes ago
- News18
Credit Score Secrets: How Small Things Like Paying Netflix Late Can Hurt You
Last Updated: And worst of all? You may never be told why you were rejected for that loan you badly needed. You just get a polite 'not eligible at the moment' message on your app. One missed payment. A few hundred rupees. No big deal, right? Except your bank just told you that you don't qualify for that ₹6 lakh personal loan. Not even a pre-approved credit card. Because somewhere in the shadowy backend of your financial life, your credit score took a quiet hit and nobody told you when it happened. And the reason? Not repaying your Buy Now Pay Later dues on time. Or leaving your Netflix UPI auto-debit hanging for two weeks. Or using up 90% of your credit card limit every month. In the age of UPI and instant credit, we are being silently judged not by friends or followers but by algorithms tracking every swipe, skip, and snooze on payment alerts. So what exactly is this credit score thing, why does it matter so much now, and how does a ₹499 Netflix bill even show up on it? What Is a Credit Score? Your credit score is like a report card for your financial habits. It's a three-digit number (typically between 300 and 900) that tells lenders how 'trustworthy" you are when it comes to repaying borrowed money. The higher the score, the more confident a bank feels in lending you money. In India, the most commonly used credit score comes from CIBIL (Credit Information Bureau of India Limited), but there are others too – Experian, Equifax, and CRIF High Mark. According to Sujata Ahlawat, Senior Vice President of TransUnion CIBIL, 'A score of 750 and above is considered good. But even small delays, especially consistent ones can start lowering it before you realise it." If you're using credit-based services like: then even one missed due date can get reported to a credit bureau. A 2023 RBI report flagged how unregulated credit services are now shaping borrower profiles. Apps often bundle up late fees and roll them into your next month's due, and that rolled-over amount, if not paid, gets tagged as a default. 'What used to be just a Netflix subscription is now essentially a microloan. And skipping it counts as a repayment failure," says Anand Kumar Bajaj, founder of PayNearby. Spending close to your credit card limit every month say, using ₹48,000 out of a ₹50,000 limit even if you pay in full can signal you're 'credit-hungry." That lowers your score subtly but steadily. Too Many Credit Enquiries Ever applied for 3–4 credit cards during a shopping season because of offers? Or tried for multiple loans on aggregator apps? Every time you apply, lenders do a 'hard check" and too many checks in a short span tell the system: 'This person might be desperate for money." Even if you didn't get any of those cards. What's New in 2025: The Algorithms Have Eyes Everywhere Until a few years ago, credit bureaus only tracked formal bank loans and credit cards. But now? BNPL services (Buy Now Pay Later) like Slice, Uni, ZestMoney feed your repayment history into bureaus. Subscription platforms that partner with NBFCs (non-banking financial companies) report defaults. Some fintech apps even create 'shadow scores" using your phone's metadata like how many times you check your account balance or how many financial apps you use. This means even UPI-based 'Pay Later" features could affect your formal credit profile. In fact, a 2024 study by Razorpay showed that over 28% of young salaried users in metros were unaware that their BNPL activity was affecting their credit score. Why Should You Care? Because in India today, your credit score affects far more than just loans. Here's what it influences: Your credit card limits and interest rates Loan approvals – even for something as small as a phone EMI Rent agreements – some landlords now ask for credit history Buy Now Pay Later limits on shopping apps Home loans and auto loans – a lower score means higher interest And worst of all? You may never be told why you were rejected. You just get a polite 'not eligible at the moment" message on your app. But I Never Took a Loan. So I Don't Have a Credit Score? That's even worse. A 'thin file" or 'no credit history" can mean you're invisible to lenders. You won't qualify for the best deals or might get outright rejected. The best way to build a healthy credit score is to: Start with a low-limit credit card, pay full dues every month. Use a Pay Later app carefully not as an extension of income. Avoid skipping even ₹10 worth of dues. Check your score at least once a year on sites like or your bank's app. It's Like Social Credit, Without the Transparency Many fintech critics are raising concerns that credit scores are becoming India's version of a 'social credit" system. You're being silently rated based on behaviour, but with no clear way to know what counted against you. 'We need a public digital literacy drive around credit in India. Most people under 30 don't even know they're being scored," says Naveen Kukreja, CEO of PaisaBazaar. Credit Karma Can Bite You top videos View all In 2025, financial hygiene is no longer optional. That ₹299 Spotify subscription? That 'ignore for now" UPI due? That mindless EMIs-on-EMIs loop? It's all being recorded. And it's all being rated. And unlike school, there's no parent-teacher meeting to warn you. Just a door quietly shutting when you need credit the most. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : Credit Card Bill Credit Score personal finance Location : New Delhi, India, India First Published: July 08, 2025, 11:29 IST News business Credit Score Secrets: How Small Things Like Paying Netflix Late Can Hurt You
Mint
37 minutes ago
- Mint
Bharat Electronics, M&M to Infosys – These 28 Nifty 50 stocks are trading at rich valuations
The Indian stock market has staged a sharp recovery in recent months following a period of heightened volatility. Both the Nifty 50 and Sensex have risen nearly 17% from April lows, and are now trading close to their September peaks, gaining around 8% year-to-date (YTD). The benchmark indices have closed each of the last four months in the green. This stellar rebound has lifted India's share in global market capitalisation to 4%, up from a 16-month low recorded in February 2025. The rally has been led by domestic cyclicals, supported by multiple macro tailwinds, including ongoing trade talks with the US, RBI rate cuts, strong government capex, above-average monsoons, lower commodity prices, and ample banking system liquidity, contributing to an improved macroeconomic outlook and renewed optimism in the equity markets. Along with the continued support from domestic investors, overseas investors have also joined hands and pumped money over the last three months, which pushed the majority of stocks to see their recent highs, and some even recorded fresh all-time highs. DIIs alone have injected over ₹ 3.5 lakh crore in the first 6 months, which was the highest ever half-yearly inflow. This surge in both domestic and foreign fund flows since April has led to a notable divergence between stock valuations and earnings, with majority of the large cap stocks are now trading significantly higher than their long-term averages. According to the latest analysis done by the domestic brokerage firm Motilal Oswal, 28 constituents of the Nifty 50 index are trading above their 10-year averages, with Bharat Electronics stock trading with a steep premium to its historical valuation, with a current P/E of 47.9x, 263% higher than its 10-year average of 13.2x. It is followed by Mahindra & Mahindra, with the PE at 35x, which is an 85% premium to its historical average of 18.9x. Other auto names like Bajaj Auto (+69%), Eicher Motors (+37%), and Hero MotoCorp (+26%) are also commanding significant premiums. In the technology space, HCL Technologies, Tech Mahindra, and Infosys are trading at 43%, 42%, and 12% premiums, respectively, while Reliance Industries is trading at a PE of 24.5x, which is 35% higher than its 10-year average of 18.2x. Other notable names trading above their long-term averages include Titan Company, Trent, Larsen & Toubro, and Wipro, with premiums ranging from 12% to 21%. In contrast, some stocks are trading at a discount to their long-term averages. Asian Paints is trading at an 18% discount, while HUL is at a 12% discount, suggesting pockets of underperformance or valuation correction in defensives. Among financials, Axis Bank is trading at a sharp 67% discount to its 10-year average PE, followed by Kotak Mahindra Bank (-25%) and IndusInd Bank (-14%). With over half of its constituents trading above their long-term averages, the Nifty 50 is now valued at a 5% premium to its 10-year average P/E of 20.7x. In terms of sector valuations, the brokerage report shows that 13 out of 20 sectors it tracks are trading at a premium to their historical averages, with infrastructure emerging as the most heated sector as it is currently trading at a 51.2% premium to its 10-year average P/E of 12.7x, followed by utilities at a 41.4% premium and capital goods at 43.9%, reflecting strong investor preference for core economy and policy-driven sectors. Other sectors trading significantly above their historical averages include chemicals (39.6%), cement (34.5%), and consumer durables (30.6%), all driven by demand recovery and earnings growth visibility. On the other hand, media is trading at the steepest discount of -33.7%, followed by PSU banks at -27.8% and private banks at -14.4%, indicating investor caution in rate-sensitive or cyclical names. The auto sector, often considered a proxy for consumption, is also trading at an 11.6% discount to its 10-year average, which is impacted by the steady drop in auto sales in recent quarters. Meanwhile, retail, consumer ex-ITC, and metals are hovering close to their historical averages with mild discounts, as per the Motilal Oswal. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Time of India
an hour ago
- Time of India
Tally's game plan: Deepening roots in Bharat, bold moves in the Gulf
As Indian MSMEs accelerate their digitisation efforts after the Covid-19 pandemic, the home-grown accounting software solutions company, Tally, is doubling down on its commitment to ensuring technology adapts to businesses, rather than the reverse. With the launch of TallyPrime 6.0 , the accounting software giant is embedding live banking, UPI payments, and automation features to eliminate friction from finance workflows. In an interview with ET Online, Tejas Goenka, Managing Director of Tally Solutions Pvt. Ltd , talks about the company's latest offerings, its approach to addressing India's last-mile technological gaps, the influence of markets like Saudi Arabia and Africa on its growth trajectory, and more. Edited excerpts: ET: What specific challenges do MSMEs face with traditional accounting and banking workflows that led to the development of Connected Banking in TallyPrime 6.0? Tejas Goenka (TG): MSMEs often struggled with fragmented workflows across accounting, banking, and payments, resulting in delays, errors, and poor visibility into their financial health. Traditional systems expected businesses to conform to the software's structure rather than adapting to the way MSMEs actually operate. With TallyPrime 6.0, we wanted to flip that equation—offering flexibility, reducing friction, and enabling business owners to work the way they prefer. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bank Owned Properties For Sale In An Khanh (Prices May Surprise You) Foreclosed Homes | Search ads Search Now Undo By integrating banking directly into Tally, we are empowering MSMEs to view balances, make payments, and reconcile accounts without switching systems; whether it's collecting payments via UPI or managing cash flow intuitively, the platform is designed to fit their rhythm, not disrupt it. ET: How do real-time banking insights and features, like smart reconciliations, help SMEs prepare for audits and optimise their working capital? TG: Audit preparation and cash flow management can become taxing for small businesses, not due to lack of discipline, but because legacy tools don't support real-time insights. Smart reconciliation automates what used to be a tedious task, saving up to 30-50% of the time spent. Tally supports over 145 bank formats, ensuring seamless reconciliation across banking partners. Live Events ET: With features like UPI links and QR codes now embedded in the invoicing process, how is Tally transforming collections for MSMEs? TG: Getting paid on time is critical for small businesses. By embedding UPI payment links and QR codes into invoices, we're drastically reducing the payment cycle. The process becomes smoother, faster, and more secure. Businesses no longer need to rely on follow-ups or paper-based processes. With just a few clicks, customers can pay, making it easier for MSMEs to manage cash flow and focus on growth. ET: Security remains a concern with any digital financial tool. What measures has Tally taken to ensure a safe and flexible banking experience? TG: We understand that for businesses to truly embrace digital workflows, trust must be built in. TallyPrime 6.0 includes end-to-end encryption, real-time fraud detection, and granular access controls. Business owners have full control over who can see and do what. Security doesn't come at the cost of usability; we ensure protection runs silently in the background without interrupting daily operations. ET: MSMEs are not always known for rapid digital adoption. How are you convincing business owners, especially the traditional ones, to embrace Tally's new features? TG: Surprisingly, MSMEs in India are more open to digital tools than they're given credit for. What holds them back isn't resistance; it's misalignment. If you present technology that respects their workflows and delivers tangible benefits, they're quick to adopt it, and that's our mission. ET: You're investing in a big expansion across smaller towns. What's driving that push, and what support do you need? TG: While we have a large partner network, there are still 200-300 towns where we lack presence. For the next 3-4 years, the goal is to deepen our reach in these markets. Wherever we have strong partners, adoption is high; where we don't, we see clear gaps. One structural challenge we face is the classification of software as a service rather than a product. That triggers compliance hurdles like TDS deductions and complicated reconciliations, even for start-ups. If the government recognised software products as a distinct category, it would ease go-to-market efforts for companies like ours and reduce the cost of compliance. Additionally, restoring R&D tax credits would fuel innovation—our core technology (Tally Definition Language or TDL) requires significant investment. ET: You have spoken about India-first innovation with global relevance. Tell us more about your overseas strategy. TG: We believe Indian tech can be globally competitive if it's designed with flexibility and adaptability in mind. We're seeing tremendous interest in regions like the Middle East and Africa, driven by the same value proposition—robust, easy-to-use accounting that respects how businesses operate locally. We have launched a native Arabic version of Tally and are now investing heavily in Saudi Arabia. We've also opened an office in Africa and continue experimenting in the UAE, which already contributes significantly to our overseas revenues. The ASEAN and MENA regions are high on our radar. Our expansion is not just about localisation—it's about exporting a proven product-market fit. In India, we serve around 3 million paid users. That depth of experience is shaping how we go global—starting from India, built for the world.
