Financial Fraud Risk Indicator
Kartavya Desk Staff
Source: BS
Context: The Reserve Bank of India (RBI) has advised all banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT).
About Financial Fraud Risk Indicator:
• What is FRI? The Financial Fraud Risk Indicator (FRI) is a risk-classification system designed to flag mobile numbers linked to financial fraud. It enables real-time, risk-based intervention in banking and UPI transactions.
• The Financial Fraud Risk Indicator (FRI) is a risk-classification system designed to flag mobile numbers linked to financial fraud. It enables real-time, risk-based intervention in banking and UPI transactions.
• Launched By: Digital Intelligence Unit (DIU) under the Department of Telecommunications (DoT) in May 2025.
• Aim of FRI: To help banks and financial service providers identify, prevent, and mitigate cyber-enabled financial frauds by offering risk insights linked to mobile numbers.
• How FRI Works?
• Risk Classification: Mobile numbers are classified as Medium, High, or Very High Risk based on suspected fraud links. Data Sources: Inputs come from: National Cybercrime Reporting Portal (NCRP) of MHA DoT’s Chakshu platform Reports from banks and UPI providers Mobile Number Revocation List (MNRL): Lists disconnected or deactivated numbers involved in fraud, shared regularly with financial stakeholders.
• Risk Classification: Mobile numbers are classified as Medium, High, or Very High Risk based on suspected fraud links.
• Data Sources: Inputs come from: National Cybercrime Reporting Portal (NCRP) of MHA DoT’s Chakshu platform Reports from banks and UPI providers
• National Cybercrime Reporting Portal (NCRP) of MHA
• DoT’s Chakshu platform
• Reports from banks and UPI providers
• Mobile Number Revocation List (MNRL): Lists disconnected or deactivated numbers involved in fraud, shared regularly with financial stakeholders.
• Key Features of FRI:
• API-based Integration: Banks can plug FRI directly into their systems for real-time fraud alerts and response. Proactive Fraud Prevention: Banks can delay, decline, or flag transactions tied to high-risk mobile numbers. Collaborative Surveillance: Encourages shared intelligence between DoT, RBI, and private players like PhonePe, Paytm, HDFC, ICICI, PNB. Targeted Alerts: Enables customer warnings, secondary verification, or stronger KYC enforcement. Supports Digital India Vision: Boosts public trust in digital payments, especially in the UPI ecosystem, where India leads globally in real-time payment volume.
• API-based Integration: Banks can plug FRI directly into their systems for real-time fraud alerts and response.
• Proactive Fraud Prevention: Banks can delay, decline, or flag transactions tied to high-risk mobile numbers.
• Collaborative Surveillance: Encourages shared intelligence between DoT, RBI, and private players like PhonePe, Paytm, HDFC, ICICI, PNB.
• Targeted Alerts: Enables customer warnings, secondary verification, or stronger KYC enforcement.
• Supports Digital India Vision: Boosts public trust in digital payments, especially in the UPI ecosystem, where India leads globally in real-time payment volume.