RBI and TRAI New Initiatives to Prevent Online Financial Frauds

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RBI and TRAI New Initiatives to Prevent Online Financial Frauds

In today's fast-paced digital world, online transactions have become the norm for banking, shopping, and communication. However, with convenience comes the rising threat of online financial frauds. The Reserve Bank of India (RBI) and the Telecom Regulatory Authority of India (TRAI) have introduced various initiatives and guidelines to safeguard customers and create a secure digital financial ecosystem.



RBI’s Guidelines to Prevent Online Financial Frauds

1. Preventing Mobile Number Misuse

  • Mobile Number Revocation List (MNRL):
    RBI mandates financial institutions to use the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT) to validate customer mobile numbers. This reduces the risk of mobile number misuse in fraudulent activities.
  • Enhanced Account Monitoring:
    Accounts linked to revoked mobile numbers will be monitored closely to prevent their use in money mule activities or other cyber frauds.

2. Securing Customer Service Channels

  • Verified Numbers on Sanchar Saathi Portal:
    Banks and financial institutions must upload their verified customer service numbers on the Sanchar Saathi Portal.
  • Designated Numbering Series:
    • 1600xx: Used for transactional calls.
    • 140xx: Dedicated for promotional calls.
      These measures ensure customers recognize genuine calls, reducing the risk of phishing and vishing frauds.

3. Awareness Campaigns

RBI has mandated financial institutions to conduct robust awareness campaigns to educate customers about cyber risks. These campaigns should be:

  • Delivered via emails, SMS, and social media.
  • Made available in regional languages for broader reach.

4. Compliance Deadline

Financial institutions must implement these directives by March 31, 2025.

Key Advisory for Customers

  • Keep your OTPs, passwords, and banking details confidential.
  • Report suspicious activities immediately to your bank or authorities.

TRAI Guidelines for Commercial Communication

The Telecom Regulatory Authority of India (TRAI) has introduced the Telecom Commercial Communications Customer Preference Regulations, 2018 (TCCCPR-2018) to curb Unsolicited Commercial Communications (UCC) and enhance customer trust.

1. Registration on DLT Platform

  • Who Needs to Register?
    All entities such as banks, mutual funds, insurance companies, and other businesses sending commercial communication must register with Telecom Service Providers (TSPs) on the Distributed Ledger Technology (DLT) platform.

  • Numbering Series for Calls:

    • 140 series: For promotional voice calls.
    • 160 series: For transactional and service calls.

2. Use of Digital Consent Acquisition (DCA)

  • Customers' explicit digital consent is required to receive promotional messages or calls.
  • Consent is verified using an OTP and recorded on the DLT platform.

3. Safeguarding Data

  • Entities must ensure customer data is secure and not misused.
  • Agreements with telemarketers must include clauses to prevent data leakage.
  • In case of data misuse, the sender is responsible for reporting to law enforcement agencies (LEAs).

4. Managing Headers and Templates

  • Headers and content templates used for SMS and calls must be registered with TSPs.
  • Promotional content cannot be mixed with transactional or service messages.

5. Penalties for Violations

  • Misuse of numbering series or sending unregistered communications can lead to disconnection of telecom services for up to two years and blacklisting of the sender.

Awareness and Reporting Measures

Customer Awareness Initiatives

  • DND Registration: Customers can block unwanted communications by registering on the TRAI DND App or by calling 1909.
  • Publicizing 160-Series Numbers: Financial institutions should educate customers about recognizing 160-series numbers to build trust.

Reporting Mechanisms

  • For spam calls/messages: File a DND complaint via the TRAI DND App or by calling 1909.
  • For suspected fraud: Report on the Sanchar Saathi Portal.
  • For financial fraud: Report immediately at 1930 or Cyber Crime Portal.

RBI and TRAI's guidelines are transformative steps toward building a secure and trustworthy digital ecosystem. By adhering to these measures, financial institutions and telecom operators can minimize fraud risks while fostering customer confidence.

Stay Vigilant

As a customer, always double-check messages or calls before acting, and never share sensitive information. Together, we can create a fraud-free digital economy.


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