Watershed Moment
RBI asks banks to integrate telecom department's Fincl Fraud Risk Indicator
This story was originally published at 19:16 IST on 2 July 2025
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--Govt: RBI asked banks to integrate Fincl Fraud Risk Indicator into systems
NEW DELHI – The Reserve Bank of India has asked banks to integrate the telecom department's Financial Fraud Risk Indicator into their systems, the government said Wednesday. The central bank issued an advisory to all scheduled commercial banks, small finance banks, payments banks, and co-operative banks on Monday.
"This is 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," the Ministry of Communications said in a release. "It also underscores the strategic importance of automating data exchange between banks and DoT's (Department of Telecommunications) DIP (Digital Intelligence Platform) through API-based integration, enabling real-time responsiveness and continuous feedback to further refine the fraud risk models."
Financial Fraud Risk Indicator is a risk-based metric that classifies a mobile number as having been associated with medium, high, or very high risk of financial fraud. The tool will enhance cyber protection and validation checks in case of mobile numbers flagged with the tool when digital payment is proposed to be made to such numbers.
Banks and financial institutions can use the fraud risk indicator in real-time to decline suspicious transactions, issue alerts or warnings to customers, and delay transactions flagged as high risk. "With UPI being the most preferred payment method across India, this intervention could save millions of citizens from falling prey to cyber fraud," the release said. End
Reported by Shubham Rana
Edited by Saji George Titus
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