Why in news?
The Reserve Bank of India has advised banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications to combat cyber‑enabled fraud.
Key details
- What it is: A risk‑classification system that flags mobile numbers involved in financial fraud, enabling banks and payment providers to intervene in real time.
- Developed by: The Digital Intelligence Unit under the Department of Telecommunications; launched in May 2025.
- How it works:
- Mobile numbers are classified as Medium, High or Very High risk based on inputs from the National Cybercrime Reporting Portal, DoT’s Chakshu platform and reports from banks and UPI providers.
- An API allows banks to integrate FRI into their systems for instant alerts. High‑risk transactions can be delayed, declined or flagged for further verification.
- Benefits: Supports proactive fraud prevention, enables collaborative surveillance between regulators and industry, and boosts public trust in digital payments—especially the UPI ecosystem where India leads globally.