**Summary:**
The Department of Telecommunications (DoT), under the Ministry of Communications, has developed a Financial Fraud Risk Indicator (FRI) to classify mobile numbers based on their association with potential financial fraud, categorizing them as medium, high, or very high risk. This risk-based metric aims to empower banks, Non-Banking Financial Companies (NBFCs), and Unified Payment Interface (UPI) service providers to prioritize enforcement and implement enhanced customer protection measures. The FRI is accessible to stakeholders through the Digital Intelligence Platform (DIP).
The Reserve Bank of India (RBI) has issued advisories to banks and Payment Service Operators (PSOs) to integrate FRI into their systems and adopt real-time response protocols, including alerts, transaction delays, warnings, and transaction declines. Action Taken Reports (ATRs) submitted on the DIP indicate that 34 banks, financial institutions, and UPI service providers have collectively frozen 10.02 lakh bank accounts and payment wallets, and placed debit/credit restrictions on 3.05 lakh bank accounts and payment wallets.
The Digital Intelligence Unit (DIU) project, under which DIP and FRI were developed, has a total budget outlay of Rs 228.16 crore for a period of 5 years. This project aims to curb the misuse of telecom resources for cybercrime and financial frauds. The Minister of State for Communications and Rural Development responsible for this initiative is Dr. Pemmasani Chandra Sekhar.
Key Entities Referenced
Department of Telecommunications: A department under the Ministry of Communications responsible for telecom policy and development in India. Also known as DoT.
Lok Sabha: The lower house of the Parliament of India.
Fraud Risk Indicator: A risk-based metric (FRI) developed by the Department of Telecommunications (DoT) to classify the risk of a mobile number being associated with financial fraud.
Unified Payment Interface: A real-time payment system in India that facilitates instant fund transfers between two bank accounts via a mobile platform. Also known as UPI.
Digital Intelligence Platform: A platform (DIP) used by stakeholders like banks and UPI service providers to access the Fraud Risk Indicator (FRI) and submit Action Taken Reports (ATRs).
RBI: Reserve Bank of India, the central bank of India.
Digital Intelligence Unit: A project (DIU) of the Department of Telecommunications (DoT) aimed at curbing misuse of telecom resources for cybercrime and financial frauds.
DR. PEMMASANI CHANDRA SEKHAR: Minister of State for Communications and Rural Development
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 2866
ANSWERED ON 6TH AUGUST, 2025
FRAUD RISK INDICATOR
2866. SHRI PRAVEEN PATEL:
SMT. KAMALJEET SEHRAWAT:
SMT. SHOBHANABEN MAHENDRASINH BARAIYA:
Will the Minister of COMMUNICATION be pleased to state:
(a) the details of the classification method adopted for identifying risk under the Fraud Risk
Indicator (FRI);
(b) the details and number of Unified Payment Interface (UPI) platforms that have started
integrating FRI alerts into their systems;
(c) the details and the number of financial fraud cases prevented so far as a result of integration
of FRI with UPI platforms; and
(d) the details and the amount of budget allocation made by the Government for development of
the Digital Intelligence Platform and FRI?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) to (c) Department of Telecommunications (DoT) has developed Financial Fraud Risk
Indicator (FRI) which is a risk-based metric that classifies a mobile number to have been associated
with Medium, High, or Very High risk of financial fraud. FRI empowers stakeholders-especially
banks, Non-Banking Financial Companies (NBFCs) and Unified Payment Interface (UPI) service
providers to prioritize enforcement and take additional customer protection measures in case a mobile
number has high risk. FRI is available through Digital Intelligence Platform (DIP) to the
stakeholders.
RBI has issued separate advisories to banks & Payment Service Operators (PSO) for
integration of FRI with their respective systems and adopt necessary real-time response protocols
(like alerts, transaction delays, warnings, transaction decline etc.). Based on the Action Taken
Reports (ATRs) submitted on DIP, 34 banks, financial institutions and UPI service providers have
frozen 10.02 lakh bank accounts/ payment wallets and placed debit/ credit restrictions on 3.05 lakh
bank accounts/ payment wallets.
(d) Digital Intelligence Unit (DIU) project of DoT has various constituents for curbing misuse of
telecom resources for cybercrime and financial frauds. DIU project of DoT is having total outlay of
Rs 228.16 crore for a period of 5 years. DIP and FRI are developed under DIU project.
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