SF Prep Notes

RBI directs banks to integrate DoT's Financial Fraud Risk Indicator

On 30 June 2025, the Reserve Bank of India issued an advisory directing all Scheduled Commercial Banks, Small Finance Banks, Payments Banks and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications.

Summary

The Reserve Bank of India (RBI) issued an advisory on 30 June 2025 directing all Scheduled Commercial Banks, Small Finance Banks, Payments Banks and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) into their systems. The FRI was launched in May 2025 by the Digital Intelligence Unit (DIU) of the Department of Telecommunications (DoT); the risk-based metric classifies a mobile number as associated with Medium, High or Very High risk of financial fraud, using inputs from I4C's National Cybercrime Reporting Portal, DoT's Chakshu platform and banks. DoT welcomed the advisory on 2 July 2025.

Key facts

Advisory
RBI, 30 June 2025
Covers
Scheduled Commercial, Small Finance, Payments and Co-operative Banks
FRI launched
May 2025 by DoT's Digital Intelligence Unit (DIU)
Risk levels
Medium, High, Very High
Inputs
I4C's NCRP, DoT's Chakshu platform, bank intelligence

Practice MCQs 3 questions

Q1

The Financial Fraud Risk Indicator (FRI), which RBI asked banks to integrate on 30 June 2025, was developed by which body?

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Correct answer: B — Department of Telecommunications

PIB: RBI's advisory of 30 June 2025 directs banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT).

Q2 Advanced

Into which risk categories does the Financial Fraud Risk Indicator classify a mobile number?

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Correct answer: C — Medium, High, Very High

PIB: the FRI classifies a mobile number as associated with Medium, High or Very High risk of financial fraud.

Q3 Advanced

Consider the following about the Financial Fraud Risk Indicator (FRI): 1. It was launched in May 2025 by DoT's Digital Intelligence Unit. 2. RBI's advisory of 30 June 2025 excludes Co-operative Banks. 3. It is built only on data from DoT's Chakshu platform. Which of the statements given above is/are correct?

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Correct answer: A — 1 only

Only statement 1 is correct (PIB). Statement 2 is wrong: the advisory covers Scheduled Commercial, Small Finance, Payments and Co-operative Banks. Statement 3 is wrong: inputs also come from I4C's NCRP and from banks and financial institutions.

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