The Reserve Bank of India (RBI) has issued new guidelines for banks, financial institutions, and payment system participants to combat rising digital fraud. A critical measure includes the mandatory use of a mobile number identification tool to enhance security and curb fraudulent activities.
Mobile Numbers: A Double-Edged Sword
The RBI highlighted the role of mobile numbers in account authentication, payment communication, and alerts. While mobile numbers provide convenience, they can also be exploited by fraudsters. “The proliferation of digital transactions has led to a surge in frauds, underscoring the need for concerted action,” the RBI stated in its January 17 notification.
Key Measures Introduced by the RBI
- Mandatory Use of Mobile Number Revocation List (MNRL)
Regulated entities must utilize the Mobile Number Revocation List (MNRL) available on the Digital Intelligence Platform (DIP), developed by the Department of Telecommunications (DoT). This tool will help identify and monitor revoked mobile numbers, clean customer databases, and prevent misuse of these numbers in cyber fraud schemes. Institutions are also required to verify updates to registered mobile numbers (RMNs) rigorously. - Standardized Customer Care and Communication
Financial entities must share verified customer care numbers with the DIP for publication on the DoT’s ‘Sanchar Saathi’ portal. This move aims to increase transparency and build customer trust. Verified numbers should be sent to the designated DoT email address. - Special Number Series for Communication
Institutions must use specific numbering series for calls:- The ‘1600xx’ series for transactional and service-related calls.
- The ‘140xx’ series for promotional calls.
Compliance with the Telecom Regulatory Authority of India (TRAI)’s guidelines on commercial communications is mandatory.
Role of TRAI and Additional Guidelines
The TRAI has emphasized the use of the Distributed Ledger Technology (DLT) platform to regulate commercial communications. Principal Entities (PEs), such as banks and mutual funds, must register with telecom service providers (TSPs) to send messages or calls. Only the approved ‘140’ and ‘160’ series can be used for promotional and transactional communications.
Content templates must also follow TRAI regulations, with fixed and variable components tagged for specific purposes like transaction amounts or customer names. Unregistered headers, unauthorized telemarketers, or misuse of templates can lead to penalties, including suspension of telecom services for up to two years.
Also read: Government Plans New PLI Scheme for Telecom Components
Consequences of Non-Compliance
The RBI and TRAI have warned that failure to adhere to these guidelines could result in severe penalties. Violations, such as using unauthorized 10-digit numbers for promotional calls, may lead to blacklisting, suspension of telecom services, and legal consequences.
Enhancing Security in Digital Transactions
By integrating these measures, the RBI aims to foster transparency, accountability, and customer trust in the digital financial ecosystem. This collaborative approach between the RBI, TRAI, and DoT reflects a proactive strategy to safeguard the integrity of the financial system and address emerging threats.
