RBI issues advisory to banks for integration of DoT’s Financial Fraud Risk Indicator
Strengthening the Fight Against Financial Frauds
In a significant move towards bolstering cybersecurity in the financial sector, the Reserve Bank of India (RBI) issued an advisory on June 30, 2025, directing all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT). This strategic initiative is expected to enhance protection against cyber-enabled financial frauds and support secure transactions in India’s fast-growing digital economy.
Automated, Real-Time Risk Detection
The integration of FRI with banking systems will enable seamless and secure data exchange between banks and the Digital Intelligence Platform (DIP) of DoT via API-based systems. This means banks will be equipped to conduct real-time fraud risk checks and receive continuous updates. The automated risk detection framework is expected to improve responsiveness and reduce the time lag in identifying and mitigating threats.
What Is the Financial Fraud Risk Indicator (FRI)?
Launched in May 2025 by the Digital Intelligence Unit (DIU) under the DoT, the Financial Fraud Risk Indicator is a technology-driven risk assessment tool. It evaluates and classifies mobile numbers into Medium, High, or Very High Risk categories based on data aggregated from:
The National Cybercrime Reporting Portal
DoT’s Chakshu platform
Intelligence inputs from banks and financial institutions
How It Helps:
With the FRI, banks can take proactive steps such as:
Declining potentially fraudulent transactions
Notifying customers about risks
Delaying or flagging high-risk transactions for further scrutiny
Additionally, the DIU provides a Mobile Number Revocation List, which includes numbers disconnected due to their association with cybercrime or misuse, further helping institutions avoid fraudulent interactions.
Wider Industry Adoption
Several leading institutions have already integrated the FRI into their systems, including:
With the growing use of UPI and digital payments in India, expanding the adoption of the FRI is seen as a crucial step in safeguarding millions of users.
A Step Towards a Safer Digital India
The Department of Telecommunications has reiterated its commitment to supporting banks and financial institutions with advanced, coordinated solutions like the FRI. This development is in line with the Digital India vision, aiming to build digital trust, improve fraud detection capabilities, and strengthen the financial ecosystem's overall resilience.
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