The Reserve Bank of India (RBI) has issued new regulatory prescriptions aimed at preventing financial frauds perpetrated through voice calls and SMS. The guidance, detailed in Circular RBI/2024-25/105 (CEPD.CO.OBD.No.S1270/50-01-001/2024-25) issued on January 17, 2025, mandates that all regulated entities (REs), including commercial banks, cooperative banks, non-banking financial companies (NBFCs), payment aggregators, and prepaid payment instrument issuers, implement institutional safeguards to curb financial frauds.
Key Measures Outlined by RBI
The measures include:
1. Utilization of the Mobile Number Revocation List (MNRL)
- The RBI has directed REs to actively monitor and cleanse their customer databases by leveraging the Mobile Number Revocation List (MNRL) available on the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT).
- This platform identifies mobile numbers that have been deactivated due to fraudulent activities, identity theft, or prolonged inactivity. Enhanced monitoring of accounts linked to such numbers will help prevent them from being misused as "money mules" or for cyber fraud.
2. Verification of Customer Care Numbers
- Financial institutions must provide verified details of their customer service contact numbers to the DoT, which will be published on the "Sanchar Saathi" portal to help customers authenticate legitimate communication from banks and financial service providers.
3. Standardized Numbering Series for Transactional Calls
- To differentiate between legitimate and fraudulent communications, RBI has mandated the use of:
- ‘1600xx’ numbering series for transactional and service calls.
- ‘140xx’ numbering series for promotional voice calls.
- These standardized numbering systems will help consumers identify genuine communications and avoid scams.
4. Adherence to TRAI Guidelines for Commercial Communications
- The RBI has instructed all REs to follow Telecom Regulatory Authority of India (TRAI) guidelines related to commercial communications via SMS and voice calls.
- Banks and financial institutions must register themselves on the Distributed Ledger Technology (DLT) platform before sending any commercial communications.
- Unauthorized use of 10-digit numbers for transactional or promotional messages will lead to disconnection of telecom services for violators.
5. Customer Awareness and Fraud Prevention Initiatives
- Financial institutions are required to conduct awareness campaigns in multiple languages to educate consumers about fraud prevention measures.
- Customers are encouraged to:
- Register for Do Not Disturb (DND) services to avoid unsolicited commercial calls.
- Report suspected fraud communications via the ‘Chakshu’ platform on the Sanchar Saathi portal.
- Report financial fraud incidents to the cybercrime helpline (1930) or visit the cybercrime reporting portal.
Compliance Deadline and Implications
The RBI has set a compliance deadline of March 31, 2025, for all regulated entities to implement these measures. Failure to comply could result in penalties and regulatory action.
Impact on the Financial Sector
These guidelines mark a significant step in enhancing the security of digital financial transactions. By leveraging digital intelligence tools, standardized numbering systems, and stricter regulatory enforcement, the RBI aims to curb fraudulent practices and restore consumer confidence in the banking and financial ecosystem.
Financial institutions must act swiftly to integrate these safeguards and ensure a robust defense against fraudsters exploiting mobile-based communication channels. Customers, too, should remain vigilant and adopt best practices for secure financial interactions.
Role of ZIGRAM in Fraud Prevention
ZIGRAM, a leading RegTech company, plays a crucial role in strengthening fraud prevention and regulatory compliance in the financial sector. With expertise in data intelligence, risk assessment, and digital security, ZIGRAM supports financial institutions in implementing advanced monitoring and detection mechanisms aligned with RBI’s new guidelines. By leveraging innovative technology, ZIGRAM helps mitigate fraud risks, enhance due diligence, and improve regulatory adherence, ensuring a safer financial ecosystem.
To understand how ZIGRAM’s solutions can help your organization comply with RBI’s guidelines and strengthen fraud prevention measures, Book a Demo now.
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- #FinancialFraud
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- #SMS
04 Mar 2025
