In an effort to combat the rising wave of fraud in digital transactions, the Reserve Bank of India (RBI) has issued new guidelines requiring banks, financial institutions, and payment system providers to adopt a tool designed to identify mobile numbers. This move comes as part of a broader initiative to safeguard the digital financial ecosystem from increasing online frauds.
The RBI highlighted in a notification issued on January 17 that while digital transactions have brought tremendous convenience, they have also led to a surge in fraudulent activities. The central bank explained that mobile numbers have become a key part of the authentication process for financial transactions. They are used for verifying accounts, receiving one-time passwords (OTPs), transaction alerts, and account updates. However, the growing reliance on mobile numbers has also made them an attractive target for scammers who exploit this information to perpetrate a range of frauds.
The RBI has stressed the importance of using the Mobile Number Revocation List (MNRL), a tool that helps banks and financial institutions identify and clean up customer databases by tracking revoked or deactivated mobile numbers. This tool, available through the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT), will help prevent the misuse of invalid or revoked numbers in fraud schemes. The RBI has directed that all regulated entities (REs) must integrate MNRL into their systems and conduct stringent verification processes when updating registered mobile numbers (RMNs). They are also instructed to monitor accounts linked to revoked mobile numbers to prevent these numbers from being used for illegal activities, such as money laundering.
In addition to the use of MNRL, the RBI has outlined several other steps that financial institutions must follow. One of the key directives involves the publication of verified customer care numbers on the ‘Sanchar Saathi’ portal. This portal, managed by the DoT, aims to enhance transparency and build trust between financial entities and customers. By publishing verified contact details, institutions will help customers confirm the authenticity of customer care numbers and reduce the risk of scam calls.
Furthermore, the RBI has mandated the use of specific number series for transactional and service-related communications. Banks and financial institutions are required to use the ‘1600xx’ numbering series for these types of calls. Promotional voice calls, on the other hand, must utilise numbers from the ‘140xx’ series. These changes are part of the effort to streamline commercial communication and prevent fraudsters from using unauthorised numbers. Institutions are also encouraged to promote awareness of these guidelines through multiple channels, including emails and SMS, in various regional languages.
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Alongside the RBI’s directives, the Telecom Regulatory Authority of India (TRAI) has also reinforced its guidelines for managing commercial communications. The TRAI emphasised the importance of the Distributed Ledger Technology (DLT) platform to regulate and track promotional communications. All Principal Entities (PEs), including banks, insurance companies, and corporates, must register with telecom service providers (TSPs) before sending any commercial SMS or voice calls. This system will ensure that only authorised numbers, such as those from the ‘140’ and ‘160’ series, are used for promotional and transactional communications. The TRAI also requires senders to use pre-approved content templates, with specific components like customer names, dates, and transaction amounts, to minimise misuse. Failure to comply with these rules can result in severe penalties, including disconnection of telecom services for up to two years.
The RBI and TRAI have made it clear that non-compliance with these regulations will lead to harsh consequences, including suspension of telecom services, blacklisting of entities, and potential legal action. Such measures aim to ensure that fraudsters are deterred and that customers can engage in digital transactions with confidence.
Through these proactive steps, the RBI and TRAI are working to create a safer environment for digital transactions. By leveraging advanced tools like MNRL and implementing stricter communication protocols, the Indian financial system aims to combat emerging fraud threats and maintain the integrity of its rapidly growing digital economy. The collaboration between the RBI, DoT, and TRAI underscores a concerted effort to protect customers and promote transparency across the digital financial sector.
