RBI Notification: Safeguards Against Financial Fraud via Voice Calls and SMS
Circular Reference: RBI/2024-25/105, January 17, 2025
In today’s digital age, mobile numbers are pivotal for account authentication, receiving OTPs, transaction alerts, and more. However, the same convenience has created opportunities for fraudsters to misuse them. Recognizing this challenge, the Reserve Bank of India (RBI) issued a directive to safeguard financial transactions from frauds involving voice calls and SMS. Let’s explore the key measures outlined in the notification and their implications.
Key Directives by the RBI
To counter fraud risks, RBI mandates the following actions for all regulated entities, including banks, NBFCs, payment aggregators, and credit information companies:
1. Monitoring Mobile Numbers Using MNRL
Regulated Entities (REs) must use the Mobile Number Revocation List (MNRL) available on the Digital Intelligence Platform by the Department of Telecommunications (DoT). This helps identify and clean up outdated or potentially misused mobile numbers in customer databases. Additional measures include:
- Updating registered mobile numbers after thorough verification.
- Enhanced scrutiny of accounts linked to revoked numbers to prevent misuse as money mules or for cyber fraud.
2. Verification of Customer Care Numbers
All customer care numbers of REs should be verified and submitted to the DoT for listing on the “Sanchar Saathi” portal. This ensures customers interact only with verified contact points.
3. Use of Approved Number Series for Communication
To curb unsolicited and fraudulent calls or messages:
- Only the ‘1600xx’ series should be used for transactional or service calls.
- The ‘140xx’ series must be reserved for promotional communication.
Additionally, REs are required to adhere to the guidelines set by the Telecom Regulatory Authority of India (TRAI) regarding voice and SMS communications.
4. Public Awareness Initiatives
Regulated Entities must proactively educate customers about:
- Identifying fraud calls or messages.
- Reporting frauds via DoT’s “Sanchar Saathi” platform and the cybercrime helpline (1930).
- Using the DND facility to block unsolicited communications.
Implementation Timeline
The RBI has instructed all regulated entities to comply with these guidelines by March 31, 2025.
Impact on the Financial Ecosystem
These measures are expected to significantly enhance customer trust and safety in digital transactions. By leveraging technology like the Digital Intelligence Platform and ensuring transparent communication practices, the financial ecosystem can reduce incidents of fraud.
Example Scenario
Imagine a scenario where a fraudster obtains access to a customer’s old mobile number, now unlinked to the original user. This number could be used to intercept OTPs or transaction alerts. However, by using the MNRL system, banks can identify and flag such revoked numbers, preventing unauthorized account activity.
Similarly, a verified customer service number listed on the “Sanchar Saathi” portal provides customers with confidence while reaching out for support.
Conclusion
The RBI’s notification underscores its commitment to combating financial fraud in an increasingly digital landscape. Customers and regulated entities alike must collaborate to ensure these safeguards are effectively implemented, fostering a secure and fraud-free financial environment.
