RBI advises Banking Institutes to induct FRI tool to reduce cyber frauds

The central banking regulatory Reserve Bank of India has issued an advisory on 30th June, directing all Small Finance Banks, Scheduled Commercial Banks, Payments Bank and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI)  into their systems.

This FRI has been developed by the Department of Telecommunications (DoT).

This induction is expected to foster efforts to mitigate the cyber backed financial frauds. It will also boost the protection of civilians via digital economy expansion.

Data exchange between banks and DoT’s Digital Intelligence Platform (DIP) will be automated through secure API-based systems which will allow for instantaneous timing of fraud risk checks and continuous updates.

 

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The Financial Fraud Risk Indicator was launched in May 2025 by Digital Intelligence Unit, DoT and is a tool which classifies the mobile numbers in the category of Medium, High or Very High risk based on data attached from National Cybercrime Reporting Portal along with intelligence survivors of banks and related institutions.

With the help of FRI, banking institutions would be able to take spontaneous preventive measures like declining suspicious transactions, alerting customers, or slowing high risk transactions.

A Mobile Number Revocation List with stakeholders is also shared by DIU which includes numbers disconnected as links connected with cybercrime or misuse.

This major initiative system is already being used by several institutions like PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm and India Post Payments Bank.

As UPI is widely used across India, the wider adoption of FRI will be able to protect millions of users from online fraud.

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