In a decisive step to tackle the growing menace of financial frauds, the Reserve Bank of India (RBI) has directed banks and payment companies to use designated phone numbering series for customer interactions. Lenders and payment companies must now use the ‘1600xx’ series for transactional calls and the ‘140xx’ series for promotional purposes, as per a circular titled “Prevention of Financial Frauds Perpetrated Using Voice Calls and SMS – Regulatory Prescriptions and Institutional Safeguards” issued by the central bank.
The RBI has highlighted the need for strict institutional safeguards to address the rising incidents of financial fraud, particularly those leveraging customers’ mobile numbers. It emphasized that mobile numbers have become ubiquitous identifiers for account authentication, verification, and communication, making them vulnerable to misuse by fraudsters.
Cleaning Up Customer Databases
To mitigate risks, banks and other regulated entities (REs) have been instructed to leverage the Mobile Number Revocation List (MNRL), an initiative available on the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT) and the Ministry of Communications. This tool will help institutions monitor and clean customer databases by identifying and revoking inactive or compromised mobile numbers.
Standard Operating Procedures for Fraud Mitigation
Banks have been directed to establish robust Standard Operating Procedures (SOPs) to enhance fraud monitoring and prevention. These SOPs must include:
- Verification Processes: Updating registered mobile numbers (RMNs) only after due verification.
- Monitoring Revoked Numbers: Intensified scrutiny of accounts linked to revoked mobile numbers to prevent misuse as “money mules” or involvement in cyber frauds.
The RBI has set a compliance deadline of March 31, 2025, urging institutions to act swiftly in implementing these measures.
Balancing Convenience and Security
‘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,’ the RBI stated.
These measures aim to enhance customer security and strengthen the banking ecosystem, ensuring greater trust in digital financial systems. Lenders and payment companies are now expected to prioritize the implementation of these guidelines to curb fraudulent activities effectively.
