RBI Directs Banks to Combat Fraud with New Phone Number Guidelines

The Reserve Bank of India (RBI) instructs banks to use specific phone numbering series to differentiate transactional and promotional calls, aiming to prevent financial fraud. Emphasizing the importance of mobile numbers in the banking verification process, the RBI also mandates enhanced monitoring procedures for fraud prevention.

The Reserve Bank of India (RBI) has instructed banks to use specific phone numbering series to prevent financial fraud. For transactional purposes, banks are required to use numbers beginning with '1600xx', and for promotional efforts, '140xx'. This move aims to curb fraudulent activities commonly executed through voice calls and SMS.

The RBI circular highlighted the surge in digital transactions and consequent rise in fraud, necessitating robust action. Mobile numbers, pivotal for account authentication and receiving critical communication like OTPs and transaction alerts, are also vulnerable to misuse by fraudsters, the circular noted.

In addition to mandating new numbering series, the RBI urged banks and regulated entities to use the Mobile Number Revocation List for better database management and fraud monitoring. Implementation of Standard Operating Procedures to safeguard customer data and prevent cyber frauds is also required. Compliance is expected by March 31, 2025.

(With inputs from agencies.)