RBI Directs Banks to Use Financial Fraud Risk Indicator (FRI), What is this? Know in Detail

The Reserve Bank of India (RBI) has asked all banks, including Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks, to use a new tool – Financial Fraud Risk Indicator (FRI). This tool was developed by the Department of Telecommunications (DoT) and the announcement was made through an official advisory on June 30, 2025.

What Is the Financial Fraud Risk Indicator (FRI)?

The FRI is a system launched in May 2025 by the Digital Intelligence Unit (DIU) under DoT. It helps banks and financial institutions identify mobile numbers linked to possible fraud. The system checks mobile numbers and marks them as Medium, High, or Very High risk, depending on reports and data from:

• The National Cybercrime Reporting Portal
• DoT’s Chakshu platform (a service where people can report suspicious communications)
• Banks and financial institutions that share intelligence data

This risk score helps banks decide whether a transaction is safe or needs to be checked further.

How Will Banks Use the FRI?

Banks will connect their systems to DoT’s Digital Intelligence Platform (DIP) using a secure method called API (Application Programming Interface). This setup will allow banks to:

• Automatically check the risk level of a mobile number during a financial transaction
• Stop or delay transactions that appear risky
• Warn customers about suspicious activities in real-time
• Get live updates on mobile numbers that have been flagged for fraud

DoT’s Extra Safety Measures: Mobile Number Revocation List

To further improve safety, DoT also shares a list of mobile numbers that have been disconnected due to their involvement in cybercrime or misuse. This is called the Mobile Number Revocation List, and it is provided to banks and financial institutions regularly.

Already in Use by Major Banks and Companies

Some of India’s top financial institutions and digital payment platforms have already started using this system, including:

• PhonePe
• Punjab National Bank (PNB)
• HDFC Bank
• ICICI Bank
• Paytm
• India Post Payments Bank

Since UPI (Unified Payments Interface) is now one of the most commonly used digital payment methods in India, the widespread use of FRI can protect millions of users from online financial frauds.

Why This Step Is Important

With cyber frauds increasing in India, the FRI helps detect and prevent scams quickly. It also helps banks and government agencies work together, creating a stronger defense system against online crime.

Part of Digital India Mission

This initiative supports the Government of India’s Digital India programme, which focuses on making digital services safe and trustworthy for everyone. The DoT has assured full support to banks and financial institutions in using technology to fight fraud and build public confidence in the digital economy.