Financial Fraud Risk Indicator (FRI)

 Financial Fraud Risk Indicator (FRI) : Recently, the Reserve Bank of India (RBI) 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)  into their systems.

• About FRI : Developed by the Digital Intelligence Unit (DIU) under the Department of Telecommunications (DoT), FRI is a risk-based tool that classifies mobile numbers as Medium, High, or Very High risk for financial fraud.

oThe classification is based on inputs from multiple sources, like: The National Cybercrime Reporting Portal (NCRP) under the Indian Cyber Crime Coordination Centre (I4C)

üDoT’s Chakshu platform

üIntelligence from banks and financial institutions

• Key Features & Uses: Enables banks, NBFCs, and UPI service providers to take preventive action against high-risk mobile numbers.

oBanks can use FRI data to: Block or delay suspicious transactions and issue alerts or warnings to customers

• The Mobile Number Revocation List (MNRL)—shared regularly by DIU—lists numbers disconnected due to cybercrime links, failed verification, or misuse.

oInstitutions such as PhonePe, Paytm, HDFC Bank, ICICI Bank, PNB, and India Post Payments Bank are already using FRI.