In a major move to strengthen India’s cybersecurity infrastructure, the Reserve Bank of India (RBI) has advised all banks to integrate the Financial Fraud Risk Indicator (FRI) — a tool developed by the Department of Telecommunications (DoT) to detect and prevent online financial fraud.
The FRI tool helps financial institutions assess the risk level of mobile numbers in real time, categorizing them as medium, high, or very high risk based on their association with fraudulent activity. This classification is built on data collected from verified sources, including the Indian Cyber Crime Coordination Centre’s National Cybercrime Reporting Portal (NCRP), the DoT’s Chakshu platform, and insights shared by banks and other financial bodies.
According to an official statement, the DoT welcomed RBI’s advisory issued on June 30, 2025, which directs scheduled commercial banks, small finance banks, payments banks, and co-operative banks to implement this tool within their systems. The system, launched in May 2025 by the DoT’s Digital Intelligence Unit (DIU), is already being used by several top players in the finance space including PhonePe, HDFC Bank, ICICI Bank, Punjab National Bank, Paytm, and India Post Payments Bank.
Given the dominance of UPI as India’s preferred payment method, the integration of FRI is seen as a crucial shield against cyber-enabled financial fraud. It allows for swift and collaborative actions between telecom and financial sectors — enabling real-time fraud alerts and preventive measures.
The DoT described RBI’s directive as a “watershed moment” in India’s cyber fraud prevention efforts. It emphasized the importance of API-based integration for real-time data exchange between banks and the DoT’s fraud monitoring systems, allowing for continuous improvement of risk models and faster intervention.
This collaboration between financial and telecom regulators marks a new era in secure digital transactions — where prevention is proactive, data is shared smartly, and citizens are better protected in an increasingly digital economy.