RBI Mandates Banks to Integrate DoT's Fraud Risk Tool to Combat Cyber Scams
- RBI has advised all banks to integrate the Financial Fraud Risk Indicator (FRI) tool developed by the Department of Telecommunications.
- The tool assesses mobile numbers for fraud risk using data from cybercrime portals and intelligence from banks.
- Leading institutions like PhonePe, HDFC, and Paytm are already using FRI; the move aims to protect UPI users and strengthen cyber fraud prevention.
In a significant move to combat rising incidents of cyber-enabled financial frauds, the Reserve Bank of India (RBI) has advised all banks to integrate the Financial Fraud Risk Indicator (FRI) tool developed by the Department of Telecommunications (DoT). The advisory, issued on June 30, 2025, mandates integration by scheduled commercial banks, small finance banks, payments banks, and co-operative banks.
The FRI, launched in May 2025 by DoT’s Digital Intelligence Unit (DIU), assesses the fraud risk level of mobile numbers in real-time, classifying them as medium, high, or very high risk. This classification is based on data drawn from the Indian Cyber Crime Coordination Centre’s National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and intelligence shared by banks and financial institutions.
Leading financial entities like PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank are already leveraging the FRI platform to safeguard transactions.
With UPI emerging as the dominant mode of digital payment across India, the RBI’s directive is expected to significantly enhance fraud prevention capabilities across the banking ecosystem. According to the DoT, the integration of FRI is a 'watershed moment' in the fight against financial cybercrimes, showcasing the power of inter-agency collaboration.
The move also highlights the importance of API-based integration between banks and DoT’s Digital Intelligence Platform (DIP), allowing real-time data exchange and adaptive fraud detection.
The FRI’s adoption aims to ensure quicker, more targeted action against fraudulent mobile numbers, protecting millions of digital users and reinforcing trust in India’s rapidly growing digital economy.
