In a major push to curb rising digital financial fraud, the Department of Telecommunications (DoT) has developed a risk-based mechanism called the Financial Fraud Risk Indicator (FRI). This tool classifies mobile numbers into categories: Medium, High, or Very High risk, based on their suspected involvement in financial crimes. The system is designed to alert and empower stakeholders such as banks, NBFCs, and UPI service providers to take swift action by prioritising enforcement and enabling customer protection.
FRI operates through the Digital Intelligence Platform (DIP), allowing financial institutions real-time access to risk assessments linked to specific mobile numbers. The initiative is part of DoT’s broader Digital Intelligence Unit (DIU) project, which aims to prevent the misuse of telecom resources in cybercrimes and financial scams.
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RBI Directs Banks to Integrate FRI: 10 Lakh+ Accounts Already Frozen
The Reserve Bank of India (RBI), in response to the growing threats posed by fraudsters, has issued advisories to banks and Payment Service Operators (PSOs) urging the integration of FRI into their operational frameworks. The central bank has asked institutions to activate real-time response mechanisms such as alerts, transaction delays, and decline protocols when high-risk mobile numbers are flagged.
According to official figures based on Action Taken Reports (ATRs) submitted on DIP, as many as 10.02 lakh bank accounts and payment wallets have been frozen, while another 3.05 lakh accounts face debit or credit restrictions. A total of 34 banks and several UPI providers have participated in these enforcement actions so far.
The FRI and DIP tools were developed under the Digital Intelligence Unit project, which carries a budgetary outlay of ₹228.16 crore for five years. This concerted move represents one of India’s most aggressive digital policy responses to financial fraud, signalling a shift toward technology-driven governance and cybersecurity. Further developments are expected as the system is more widely adopted across the financial and telecom sectors.