RBI directs Banks to adopt DoT’s FRI system to tackle cyber scams

NEW DELHI, July 3:  In a major step to combat cyber-enabled financial frauds, the Reserve Bank of India (RBI) has mandated 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).

The advisory, issued on June 30, 2025, aims to boost fraud detection by leveraging real-time telecom and financial intelligence. The FRI system, launched in May 2025 by DoT’s Digital Intelligence Unit (DIU), assigns risk levels—Medium, High, or Very High—to mobile numbers based on data from the National Cybercrime Reporting Portal, DoT’s Chakshu platform, and financial institutions.

The system enables banks to flag, delay, or block transactions linked to high-risk numbers. Already in use by major players like HDFC Bank, PhonePe, Paytm, and India Post Payments Bank, the FRI model is expected to curb rising UPI-related fraud.

Integration will occur through API-based connectivity with DoT’s Digital Intelligence Platform, allowing for continuous data exchange and real-time updates. The platform also incorporates the Mobile Number Revocation List (MNRL), which flags deactivated or suspicious numbers frequently tied to scams.

Calling it a “watershed moment,” the DoT highlighted the inter-agency collaboration as a key pillar in building a secure digital economy. The move aligns with the Digital India mission, promising enhanced digital trust and stronger systemic resilience across India’s financial ecosystem.