DoT welcomes RBI advisory mandating banks to integrate financial fraud risk indicator
The Ministry of Communications stated in a release that the advisory marks a watershed moment in the fight against cyber-enabled financial frauds and serves as a testament to the power of inter-agency collaboration in safeguarding citizens in India's growing digital economy.
The apex bank issued the advisory on June 30, 2025.
The Ministry stated that it also emphasises the strategic importance of automating data exchange between banks and the DoT's DIP through API-based integration, enabling real-time responsiveness and continuous feedback to further refine the fraud risk models.
The Financial Fraud Risk Indicator (FRI), launched in May 2025 by DoT's Digital Intelligence Unit (DIU), 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 (I4C's) National Cybercrime Reporting Portal (NCRP), DoT's Chakshu platform, and Intelligence shared by banks and financial institutions.
It empowers stakeholders, especially banks, NBFCs, and UPI service providers, to prioritise enforcement and take additional customer protection measures in case a mobile number has high risk.
The Digital Intelligence Unit (DIU) of DoT 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.
Banks and financial institutions can use FRI in real time to take preventive measures such as declining suspicious transactions, issuing alerts or warnings to customers, and delaying transactions flagged as high risk.
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.
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.
'DoT remains committed to supporting banks and financial institutions in their efforts to combat cyber-enabled fraud by deploying technology-led, nationally coordinated solutions like the Financial Fraud Risk Indicator. This move marks a new era of digital trust and security, reinforcing the Government's broader Digital India vision,' the Ministry stated in the release.
The release further added that DoT continues to work closely with RBI-regulated entities to streamline alert mechanisms, accelerate fraud detection, and integrate telecom intelligence directly into banking workflows. 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. (ANI)
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Automated Intelligence & Threat Feeds Integrates threat intelligence from multiple sources (dark web, breach databases) to identify compromised credentials or fraud schemes. Proactively alerts customers about emerging fraud tactics. Collaboration with Fintech & Banks Fraud detection models help financial institutions block suspicious transactions. Reduces financial losses for customers. Identity Verification & Authentication Enhances identity proofing with biometrics, device fingerprinting, and behavioural analytics to prevent impersonation fraud. Adaptive Fraud Mitigation Continuously learns from new fraud patterns to improve detection accuracy. Reduces false positives, improving customer experience while maintaining security. Regulatory Compliance & Reporting Helps organizations comply with anti-fraud regulations (e.g., PSD2, GDPR) by providing audit trails and fraud analytics. 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Cross-sharing of telecom and banking data must be privacy-conscious under the DPDPA Act. Fraud Adaptation: Scammers may move to untraceable channels (e.g. WhatsApp or foreign VoIP numbers), needing TRI to evolve further. The Reserve Bank of India (RBI) has declared war on cyber fraud affecting bank customers in India. On June 30, 2025, the RBI directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to incorporate the Financial Fraud Risk Indicator ( FRI ) developed by the Department of Telecommunications (DoT) into their developed this cyber security system known as FRI and rolled it out in May 2025. To give a brief overview of this technology, the FRI allows for the automated exchange of data and information between the banks and DoT's Digital Intelligence Platform (DIP). This system aids banks in safeguarding customers from cyber frauds by facilitating real-time responses to any fraudulent activity and providing continuous feedback to emhance the fraud risk a press release dated July 2, 2025, DoT 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. 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 frauds in both telecom and financial domains.'Check out the info below to learn more about this technology and how it can protect regular bank customers from the threats of cyber the press release, the DoT said that the Financial Fraud Risk Indicator (FRI) 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 (I4C's) National Cybercrime Reporting Portal (NCRP), DoT's Chakshu platform, and Intelligence shared by banks and financial institutions.'DoT said that the FRI technology empowers stakeholders-especially banks, NBFCs, and UPI service providers- to prioritize enforcement and take additional customer protection measures in case a mobile number has high said in the press release: 'The Digital Intelligence Unit (DIU) of DoT 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.'The telecom department said that banks and financial institutions can use FRI in real time to take proactive steps like declining suspicious transactions, issuing alerts or warnings to customers, and delaying transactions flagged as high Wig, Co-founder & CEO, Innefu Labs says: 'Banks can leverage FRI to proactively alert customers about suspicious calls or messages originating from numbers identified as high-risk. By integrating FRI into their digital banking platforms, customer service workflows and fraud detection engines, banks can strengthen their ability to identify potential threats in real-time. Moreover, by coupling FRI data with AI-based risk scoring and user behaviour, analytics can help banks predict and prevent fraud before it occurs. This enhances customer trust and reduces financial exposure, while also helping law enforcement trace fraud networks more effectively.'Sheetal R Bhardwaj, executive member of Association of Certified Financial Crime Specialists (ACFCS), says: "Already adopted by major players like HDFC, ICICI, PhonePe, and Paytm, FRI enables institutions to flag suspicious activity, protect consumers, and reduce scam exposure. Its collaborative model bridges telecom and finance, creating a unified defense against cyber threats. As UPI continues to dominate India's payment landscape, FRI enhances transaction integrity and consumer confidence. With its scalable, data-driven approach, FRI could become a global model for fintech-telecom collaboration in fraud prevention—positioning India as a leader in digital trust."DoT further said: 'This move marks a new era of digital trust and security, reinforcing the Government's broader Digital India vision. DoT continues to work closely with RBI-regulated entities to streamline alert mechanisms, accelerate fraud detection, and integrate telecom intelligence directly into banking workflows. 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.'ET Wealth Online has asked various experts about how DoT's FRI technology can help consumers, here's what they said:There are few countries who use similar technology like USA, UK, Singapore, Australia, China etc. This latest development layers telecom intelligence into banking workflows, creating a proactive fraud shield:Here's how banks can use TRI technology to help their customers in respect to cyber fraud:Strengths of this technology:The Financial Fraud Risk Indicator (FRI), launched by the Department of Telecommunications' Digital Intelligence Unit, is more than a fraud detection tool—it's a digital trust enabler. By classifying mobile numbers based on fraud risk using data from cybercrime portals, telecom intelligence, and financial institutions, FRI empowers banks and UPI providers to take real-time, preventive action.
