RBI’s New Guidelines: Tackling Digital Fraud with Mobile Number Tracking

The Reserve Bank of India (RBI) has rolled out new guidelines aimed at mitigating the growing risks of fraud in digital transactions. With mobile numbers now central to account verification and transaction alerts, they have become both a critical tool and a target for scammers. To combat this, the RBI emphasises the need for stricter regulatory measures, improved customer communication, and advanced fraud-prevention tools.

The Role of Mobile Numbers in Fraud Prevention

In its notification dated January 17, the RBI stated, “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 highlighted the dual nature of mobile numbers, which, while essential for customer authentication and sensitive communication, are increasingly exploited by cybercriminals to commit fraud.

Key Measures to Prevent Fraud

1. Mandatory Use of Mobile Number Revocation List (MNRL)

The RBI has mandated the use of the Mobile Number Revocation List (MNRL) available on the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT). This tool helps financial institutions clean their customer databases and monitor accounts linked to revoked mobile numbers.

• Banks must conduct stringent verification when updating registered mobile numbers (RMNs).
• Accounts linked to such numbers should be closely tracked to prevent misuse as ‘money mules’ in cyber fraud schemes.

2. Standardised Customer Care and Verified Communication

To enhance transparency and customer confidence, financial entities must:

• Provide verified customer care numbers for publication on the ‘Sanchar Saathi’ portal.
• Submit these details to the DoT at adg.diu-dot@gov.in.

3. Dedicated Numbering Series for Communication

The RBI has directed entities to adopt special numbering series for various communications:

• Use the ‘1600xx’ series for transactional and service-related calls.
• Use the ‘140xx’ series for promotional voice calls.

Institutions must adhere to the “Important Guidelines for sending commercial communication using telecom resources through Voice Calls or SMS,” issued by TRAI and attached to the circular.

TRAI Guidelines for Commercial Communication

The Telecom Regulatory Authority of India (TRAI) has implemented strict regulations to curb the misuse of telecom resources in commercial communications.

1. Use of DLT Platform for Regulated Communications

Principal Entities (PEs), such as banks, corporates, and mutual funds, must:

• Register with telecom service providers (TSPs) on the Distributed Ledger Technology (DLT) platform.
• Use only authorised headers from the ‘140’ and ‘160’ series for promotional and transactional calls.

2. Pre-approved Content Templates

To minimise fraud and unauthorised communication:

• Messages must follow pre-approved templates with fixed and variable components.
• Variable fields, such as customer names or transaction details, must be tagged for specific purposes.

Violations, such as unauthorised telemarketing or misuse of templates, can result in penalties or suspension of telecom resources for up to 2-year.

Consequences of Non-Compliance

Failure to adhere to these guidelines could lead to severe repercussions:

• Suspension of telecom services.
• Blacklisting of entities.
• Legal action against offenders.

Both the RBI and TRAI have stressed the importance of compliance to protect the integrity of financial transactions and bolster customer trust.

Promoting Awareness to Combat Fraud

Regulated entities have been advised to proactively educate their customers on these measures through emails, SMS, and other communication channels in regional languages. This awareness campaign aims to empower customers to identify and report fraudulent activities more effectively.

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