RBI asks banks to uses tool that identifies phone numbers to curb fraud
New Delhi, Jan 24, 2025
Regulator asks financial institutions to use special number series for promotional voice calls
The Reserve Bank of India (RBI) has issued new guidelines for banks, financial institutions and “payment system providers and participants” to take a series of steps to prevent fraud, including using a tool that identifies mobile numbers.
“The proliferation of digital transactions, while offering convenience and efficiency, has also led to a surge in frauds, a pressing concern underscoring the need for concerted action,” said the RBI in a notification dated January 17.
“The mobile number of a customer has emerged as a ubiquitous identifier, instrumental in account authentication and verification process, receiving sensitive payment communication, such as OTPs, transaction alerts, account updates, etc. The mobile number, however, can also be misused by scamsters in multiple ways for committing various types of online and other frauds.”
Steps RBI wants banks to take
Mandatory use of mobile number revocation list (MNRL)
The RBI has asked regulated entities (RE) to use the Mobile Number Revocation List (MNRL) available on the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT). This tool will help clean customer databases and monitor accounts linked to revoked mobile numbers. “Institutions must also ensure stringent verification when updating registered mobile numbers (RMNs) and track accounts linked to these numbers to prevent their misuse as ‘money mules’ in cyber frauds,” it said.
Standardised customer care and commercial communication
The RBI has instructed financial entities to provide verified customer care numbers to the DIP for publication on the ‘Sanchar Saathi’ portal. This move aims to increase transparency and customer confidence. The details may be shared on the DoT email
Special series numbers for communication
Use the ‘1600xx’ numbering series exclusively for transactional and service-related calls once it is operationalised. For promotional voice calls, utilise phone numbers with the ‘140xx’ numbering series. Ensure compliance with the “Important Guidelines for sending commercial communication using telecom resources through Voice Calls or SMS,” as issued by the Telecom Regulatory Authority of India (TRAI) and attached to this circular.
Additionally, regulated entities are advised to promote awareness on this matter through emails, SMS, and other communication channels, including in vernacular languages.
“All REs are advised to ensure compliance with the above instructions expeditiously,” said the RBI.
TRAI guidelines
The TRAI has also emphasised the use of the DLT platform to regulate commercial communications. Principal Entities (PEs), including banks, mutual funds, and corporates, must register with telecom service providers (TSPs) to send SMS and voice communications. Only authorised ‘140’ and ‘160’ numbering series are permitted for promotional and transactional calls, respectively.
In addition, TRAI requires senders to use pre-approved content templates with fixed and variable components to minimise misuse. Variables must be pre-tagged for specific purposes such as customer names, dates, or transaction amounts. Unregistered headers, unauthorised telemarketers, or misuse of templates can result in penalties, including disconnection of telecom resources for up to two years.
Consequences of non-compliance
The RBI and TRAI have warned that violations of these guidelines, such as using unauthorised 10-digit mobile numbers for promotional calls or failing to register headers and templates, may lead to severe consequences. Offenders could face suspension of telecom services, blacklisting, or legal action.
By fostering transparency, accountability, and customer trust, the RBI aims to create a safer environment for digital transactions while ensuring the integrity of the financial system. These regulatory measures demonstrate a proactive and prudent strategy to address emerging threats to the financial system, showcasing strong inter-agency collaboration between the RBI and the DoT.
[The Business Standard]
