RBI Tells Banks to Use New Fraud Detection System

On June 30, 2025, the Reserve Bank of India (RBI) asked all banks to start using a new system called the Financial Fraud Risk Indicator (FRI). This tool was made by the Department of Telecommunications (DoT) to stop rising online financial frauds. It helps detect risky mobile numbers in real time, making it easier for banks to protect customers.

What is the Financial Fraud Risk Indicator (FRI)?

The FRI is a digital tool developed by DoT to find out if a mobile number is linked to fraud. It puts mobile numbers into groups like medium, high, or very high risk based on how likely they are to be used in scams. It gets this information from different places, like the Cyber Crime Reporting Portal, Chakshu platform, and reports from banks.

How Banks Will Use FRI

All types of banks—Scheduled Commercial Banks, Small Finance Banks, Payment Banks, and Co-operative Banks—have been told to connect their systems with FRI. When a risky number is found, banks can stop the transaction, send warnings to the customer, or take other safety steps. Some banks like HDFC Bank, ICICI Bank, and apps like PhonePe and Paytm are already using it and seeing good results.

Real-Time Protection Using API

The DoT’s Digital Intelligence Unit (DIU) shares a list of mobile numbers that were disconnected for fraud, called the Mobile Number Revocation List (MNRL). Banks can connect to DoT’s Digital Intelligence Platform using API (Application Programming Interface). This means the system works in real-time, giving faster results and better safety.

A Big Step for Safer Digital Banking

The Ministry of Communications said that this is a nationally coordinated move to fight online fraud. With more banks using FRI, it will become a standard safety tool in India’s banking system. It helps keep customers’ money safe and builds more trust in digital banking.

Shivam

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