RBI Urges Banks to Adopt DoT’s Financial Fraud Risk Indicator for Enhanced Cybersecurity

In a major move to strengthen digital financial safeguards, the Reserve Bank of India (RBI) has issued an advisory encouraging all banks to adopt the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecom (DoT). This initiative, issued on June 30, 2025, reflects a growing emphasis on real-time fraud prevention amid the rising use of digital payments across India.

Real-Time Intelligence for Fraud Detection

The FRI tool allows banks and financial institutions to identify fraud risks instantly by classifying mobile numbers based on their risk level: medium, high, or very high. The data that feeds into this system is aggregated from the National Cybercrime Reporting Portal of the Indian Cyber Crime Coordination Centre (I4C), DoT’s Chakshu platform, and information shared by financial institutions themselves. 

The Reserve Bank of India (RBI) has advised all banks to integrate the Financial Fraud Risk Indicator tool developed by the Department of Telecom (DoT) to curb online fraudulent transactions, according to an official statement on Wednesday.

Adoption by Leading Institutions and Strategic Vision

DoT welcomes the RBI advisory issued on June 30, 2025, directing all scheduled commercial banks, small finance banks, payment banks, and co-operative banks to integrate the Financial Fraud Risk Indicator (FRI) developed by DoT into their systems," the statement said. 

Since its launch in May 2025 by the Department of Telecommunications' Digital Intelligence Unit (DIU), the system has proven its effectiveness, with major institutions such as PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank actively adopting 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," the statement said.

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Conclusion

DoT called the RBI move a watershed moment in the fight against cyber-enabled financial frauds and a testament to the power of inter-agency collaboration in safeguarding citizens in India's growing digital economy. 

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