The Reserve Bank of India (RBI) has introduced new requirements for banks and regulated entities regarding phone number usage for customer communications, implementing specific numbering series for different types of calls to enhance security in digital transactions. The initiative builds upon India’s broader efforts to strengthen its digital banking infrastructure, including the recent mandatory Aadhaar-based biometric verification for new SIM cards.
Under the new directive, banks must exclusively use the ‘1600xx’ phone numbering series for transactional communications, including account updates, transaction alerts, and One-Time Password (OTP) delivery. For promotional activities, institutions are required to use the ‘140xx’ numbering series, creating a clear distinction between transaction-related and marketing communications. The separation addresses growing concerns about OTP-based banking fraud schemes that have affected numerous account holders across India.
The initiative includes integration with the Digital Intelligence Platform (DIP) developed by the Department of Telecommunications (DoT) and the Ministry of Communications. Banks must use the Mobile Number Revocation List (MNRL) available on the DIP for enhanced database management and fraud monitoring capabilities. The integration complements India’s recent launch of a searchable cyber scammer database designed to combat digital fraud.
As part of the requirements, regulated entities must develop Standard Operating Procedures (SOPs) incorporating protocols for fraud risk monitoring and prevention. These procedures will include processes for updating registered mobile numbers after verification and enhanced monitoring of accounts linked to revoked mobile numbers.
“All REs are advised to ensure compliance with the above instructions expeditiously, in any case not later than March 31, 2025,” said Dr. Neena R. Jain, Chief General Manager at RBI. The RBI has established this compliance deadline for all regulated entities to implement these new requirements.
Financial institutions are required to inform customers about these measures through various communication channels, including email and SMS. The directive also emphasizes the importance of conducting awareness campaigns to educate customers about the new guidelines and fraud prevention measures.
The implementation of these specific numbering series strengthens existing security measures, including recent mandates for Aadhaar-based biometric verification for new SIM cards, creating a more comprehensive framework for fraud prevention in digital banking. The measures support the RBI’s broader initiatives to strengthen digital payment security, including the recent expansion of the Unified Payments Interface (UPI) system to include digital wallets and prepaid cards.
Sources: Mobile ID World, Devdiscourse, TaxGuru, MoneyControl
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