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.
- 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?
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- 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.
- Key Features of FRI:
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- 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.
