The Department of Telecommunications (DoT) has recently reported that the Financial Fraud Risk Indicator (FRI) has successfully prevented potential losses of ₹660 crore across the banking ecosystem within just six months of its rollout. This initiative aims to enhance security measures against financial fraud.
Launched in May 2025 by the DoT’s Digital Intelligence Unit (DIU), the FRI is a risk-based metric designed to categorize mobile numbers into three distinct risk levels: Medium, High, and Very High. This classification is based on the likelihood of the numbers being involved in financial fraud.
The FRI employs a thorough analysis that incorporates inputs from various platforms, including the Indian Cybercrime Coordination Centre’s National Cybercrime Reporting Portal (NCRP), the DoT’s Chakshu platform, and intelligence shared by banks and financial institutions. By identifying high-risk numbers early on, the FRI empowers banks, non-banking financial companies (NBFCs), and UPI service providers to implement necessary protective measures for customers and validate transactions effectively.
The DIU regularly distributes the Mobile Number Revocation List (MNRL) which includes mobile numbers that have been disconnected due to their involvement in cybercrime, failed verification, or exceeding permissible usage limits. These numbers are frequently associated with financial fraud activities.
Since fraudulent mobile numbers tend to be transient and verification processes can be time-consuming, a proactive tool like the FRI proves to be highly effective. Once a suspected mobile number is flagged by any stakeholder, it undergoes a multidimensional analysis to determine its associated financial risk level.
After this classification, the assessment is promptly shared with all relevant stakeholders through the DoT’s Digital Intelligence Platform (DIP). This enables banks and financial institutions to utilize the FRI in real-time, allowing them to take preventive actions, such as declining suspicious transactions, issuing alerts to customers, and postponing transactions categorized as high-risk.
Q1. What is the significance of the Financial Fraud Risk Indicator (FRI)?
Answer: The FRI is crucial as it helps identify and categorize mobile numbers at risk of financial fraud, preventing significant losses in the banking sector.
Q2. How does the FRI classify mobile numbers?
Answer: The FRI classifies mobile numbers into three categories: Medium, High, and Very High Risk based on their likelihood of being involved in financial fraud.
Q3. What tools does the FRI use for its analysis?
Answer: The FRI utilizes data from platforms like the NCRP, the DoT’s Chakshu platform, and intelligence from banks and financial institutions for its assessments.
Q4. What is the Mobile Number Revocation List (MNRL)?
Answer: The MNRL is a list of mobile numbers disconnected due to cybercrime involvement or failed verifications, helping in identifying potentially fraudulent activities.
Q5. How quickly can banks act on FRI assessments?
Answer: Banks can act in real-time on FRI assessments, enabling them to prevent suspicious transactions and enhance customer security effectively.
Question 1: What does the Financial Fraud Risk Indicator (FRI) aim to prevent?
A) Cybersecurity breaches
B) Financial fraud losses
C) Banking regulations
D) Loan defaults
Correct Answer: B
Question 2: When was the FRI launched by the DoT?
A) May 2024
B) May 2025
C) June 2025
D) April 2025
Correct Answer: B
Question 3: What are the risk categories used by the FRI?
A) Low, Medium, High
B) Very Low, Low, High
C) Medium, High, Very High
D) Low, Moderate, High
Correct Answer: C
Question 4: What is the purpose of the Mobile Number Revocation List (MNRL)?
A) To track customer transactions
B) To identify disconnected numbers
C) To monitor customer feedback
D) To manage bank accounts
Correct Answer: B
Question 5: How does the FRI assist financial institutions?
A) By providing loans
B) By classifying fraud
C) By blocking mobile numbers
D) By validating transactions
Correct Answer: D
Question 6: Which department launched the FRI?
A) Ministry of Finance
B) Department of Telecommunications
C) Reserve Bank of India
D) Ministry of Home Affairs
Correct Answer: B
Question 7: What is the primary benefit of using the FRI in banking?
A) Enhancing customer satisfaction
B) Preventing significant financial losses
C) Increasing loan approval rates
D) Promoting digital payments
Correct Answer: B
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