RBI Implements Telecom Technology to Combat Online Fraud

RBI's New Directive to Banks

The Reserve Bank of India (RBI) has mandated all banks to utilize technology from the Department of Telecommunications to prevent online fraud transactions. This announcement was made in an official statement on Wednesday.

This technology from the telecommunications department serves as a financial fraud risk indicator tool. Banks and financial institutions can leverage the Financial Risk Indicator (FRI) in real-time to assess potential fraud risks.

The system classifies mobile numbers based on their association with medium, high, or very high financial fraud risks. Data is collected from various sources, including the National Cyber Crime Reporting Portal (NCRP) managed by the Indian Cyber Crime Coordination Centre, the telecom department's Chaksu platform, and intelligence shared by banks and financial institutions.

The statement noted, 'The Department of Telecommunications welcomes the RBI's advisory issued on June 30, 2025, directing all scheduled commercial banks, small finance banks, payment banks, and cooperative banks to integrate the financial fraud risk indicator into their systems.'

The telecommunications department's 'Digital Intelligence' unit introduced this system in May 2025. However, its effectiveness has already been demonstrated. Major institutions such as PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank are currently utilizing this platform.

According to the statement, 'At a time when the Unified Payments Interface (UPI) has become the most preferred payment system across India, this initiative can protect millions of citizens from falling victim to cyber fraud. The FRI enables swift, targeted, and collaborative action against suspected fraud in both telecommunications and financial sectors.'