RBI Asks Banks To Use Only '1600xx' Series Phone Numbers To Call Customers For Transactional Purposes

The Reserve Bank of India (RBI) issued a notification dated January 17, 2025, asking banks to use only ‘1600XX’ series phone numbers for transactional purposes and use ‘140XXX’ series numbers for promotional purposes. The idea is to make the identification of the purpose of the call and prevent fraud. The banks and regulated entities (REs) typically use voice calls and SMS, many times for promotional purposes and that is where the frauds can happen easily. Further, it suggested REs keep monitoring their database and clean their customers’ data. The REs are required to update customers’ registered mobile numbers, monitor the accounts linked with these mobile numbers, and take measures to prevent the accounts from being used as Money Mules or for cyber frauds.

As per the RBI notification, “The proliferation of digital transactions, while offering convenience and efficiency, has also led to a surge in frauds, a pressing concern underscoring the need for concerted action. The mobile number of a customer has emerged as a ubiquitous identifier, instrumental in account authentication and verification process, receiving sensitive payment communication, such as OTPs, transaction alerts, account updates, etc.”

With the digitalisation in financial transactions rising, and mobile number is used as the identifier, receiving OTPs, and authenticating the transactions, it is essential to keep them safe and secure.

“The mobile number, however, can also be misused by scamsters in multiple ways for committing various types of online and other frauds”, reads the notification.

Thus, RBI suggested banks ensure security and develop proper standard operating procedures for it. The circular reads, “To enhance fraud risk monitoring and prevention, the REs are advised to develop Standard Operating Procedures (SOP) incorporating the required action to be taken including, inter alia, updating the registered mobile number (RMN) after due verification; enhanced monitoring of accounts linked to these revoked mobile numbers for preventing the linked accounts from being operated as Money Mules and/or being involved in cyber frauds, etc.”

In May 2024, the Department of Telecommunications (DoT) started the 160XXX series numbers, especially for service/transactional calls, and preventing spam and fraud. Previously, 140XXX series numbers were used for all types of calls, including promotional, service, or transactional calls. Because they predominantly were promotional calls, customers would not pick up the calls. Thus, the new number series was introduced and the difference between promotional and transactional calls became clear.

It was made available for financial entities, like RBI, the Insurance Regulatory Development Authority of India (Irdai), the Pension Fund Regulatory and Development Authority (PFRDA), etc. 

The 160XXX series phone number has 10 digits (160-X-XXXXXX), prefixed by three digits 160, indicating a transactional call from the regulated entity. The fourth digit is ‘1’ after the prefix for financial entities and ‘0’ for others. The next two digits are of the telecom circle code (11 for Delhi, 22 for Kolkata, etc.), then the seventh digit shows the telecom operator code, and the remaining three digits are random starting from 000 to 999.

Now, RBI has directed all REs to comply with the instructions expeditiously regarding phone calls to the customers and set March 31, 2025, as the deadline for this.