RBI Mandates New Measures to Curb Financial Frauds via Voice Calls and SMS

The Reserve Bank of India (RBI) has issued fresh guidelines to combat rising financial frauds involving voice calls and SMS. Lenders and payment companies must now use the '1600xx' phone numbering series for transactional calls and the '140xx' numbering series for promotional purposes. This step is part of a broader initiative outlined in the circular titled “Prevention of Financial Frauds Perpetrated Using Voice Calls and SMS – Regulatory Prescriptions and Institutional Safeguards.”

The RBI emphasized the role of mobile numbers as critical identifiers in account authentication, verification, and the receipt of sensitive communication, such as OTPs and transaction alerts. However, fraudsters have increasingly exploited mobile numbers for various scams, prompting the need for stricter controls.

To enhance customer data security, banks and other regulated entities (REs) have been instructed to utilize the Mobile Number Revocation List (MNRL), accessible via the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT) and the Ministry of Communications. This tool will help identify and remove revoked or invalid numbers from customer databases.

In addition, the RBI has directed banks to implement Standard Operating Procedures (SOPs) for fraud risk management. These procedures include verifying and updating registered mobile numbers (RMNs) and closely monitoring accounts linked to revoked numbers to prevent their misuse as money mules or for cyber fraud.

Banks must ensure compliance with these measures by March 31, 2025. The RBI underlined the urgency of these actions, noting that while digital transactions offer unparalleled convenience, they also present opportunities for fraudsters. By addressing these vulnerabilities, the RBI aims to safeguard customers and maintain trust in the digital ecosystem.