PIB Summary - 3rd July 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Ten Years of Digital Progress

Digital India: Transforming Governance and Economy

Digital India has revolutionized governance, service delivery, and citizen empowerment, effectively bridging the digital divide between rural and urban areas. Over the past decade, India has developed one of the world’s fastest-growing digital economies, supported by robust infrastructure, fintech inclusion, advancements in artificial intelligence (AI), and public digital platforms.

Connectivity and Infrastructure

• The number of internet connections surged from 25.15 crore in 2014 to 96.96 crore in 2024, marking an increase of approximately 285%.
• India installed 4.74 lakh 5G towers, achieving coverage in 99.6% of districts.
• Under the BharatNet initiative, 2.18 lakh Gram Panchayats were connected, and 6.92 lakh kilometers of fiber optic cable were laid.
• Tele-density improved from 75.23% in 2014 to 84.49% in 2024.

Digital Economy and Growth

• The digital economy’s share of GDP increased from 11.74% in 2022-23 to 13.42% in 2024-25.
• India now ranks third globally in digitalization, according to the ICRIER Report.
• By 2030, the digital economy is projected to contribute around 20% to GDP.

Affordable Internet Access

• Data costs plummeted from ₹308 per GB in 2014 to ₹9.34 per GB in 2022.
• 4G services reached approximately 96% of villages, and 5G deployment was scaled in just 22 months, making it the fastest in the world.

Digital Public Platforms and Inclusion

• The Unified Payments Interface (UPI) facilitated 1867.7 crore transactions worth ₹24.77 lakh crore in April 2025 and is now used in over seven countries.
• DigiLocker expanded to 53.92 crore users, up from 9.98 lakh in 2015.
• The UMANG app gained 8.34 crore users, offering over 2300 services in 23 languages.

E-Governance and Service Delivery

• Direct Benefit Transfers (DBT) saved ₹3.48 lakh crore and facilitated ₹44 lakh crore in transfers.
• The Government e-Marketplace (GeM) recorded a Gross Merchandise Value (GMV) of ₹4.09 lakh crore in FY25.
• The Open Network for Digital Commerce (ONDC) onboarded over 7.64 lakh sellers, operating in 616+ cities.
• The Karmayogi Bharat initiative trained 1.21 crore officials and issued 3.24 crore certificates.

Strategic Technology Initiatives

• The IndiaAI Mission, with an investment of ₹10,371 crore, aims to enhance AI innovation, compute capacity, ethics, skills, and support for startups.
• The India Semiconductor Mission, with a budget of ₹76,000 crore, has approved six projects worth ₹1.55 lakh crore, with five semiconductor fabs under construction.
• The HCL-Foxconn joint venture is establishing a display unit near Jewar Airport in Uttar Pradesh, and SEMICON India 2025 aims to strengthen global chip supply chains.

Inclusivity and Language Access

• The BHASHINI initiative supports over 35 languages and has developed 1600 AI models for multilingual access, with over 8.5 lakh downloads.

Global Digital Leadership

• UPI has been adopted in over seven countries, and the Aadhaar model is being studied internationally.
• India is projected to be a leader in Digital Public Infrastructure (DPI) during its G20 Presidency in 2023.

Cybersecurity and Data Protection

• The Digital Personal Data Protection Act was enacted in 2023 to safeguard personal data.
• The Indian Computer Emergency Response Team (CERT-In) and the National Cyber Coordination Centre (NCCC) monitor cybersecurity threats.

Environmental Sustainability

• Digital governance has reduced carbon emissions, but the demand for energy by data centres is a growing concern.
• The Green Data Centre Policy is under consideration to address these challenges.

Start-up Ecosystem and MSMEs

• Over 1.25 lakh startups are leveraging Digital Public Infrastructure, including Aadhaar, UPI, and ONDC.
• ONDC is currently active in over 600 cities.

Digital Literacy and Skilling

• The Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) has trained approximately six crore rural citizens in digital literacy.
• Initiatives like IndiaAI FutureSkills, DIKSHA, and SWAYAM are expanding their reach to enhance digital skills and literacy.

Social Sector Integration

• eSanjeevani has facilitated over 16 crore teleconsultations, providing healthcare services remotely.
• DIKSHA offers digital educational content in more than 35 languages to promote learning.
• AgriStack is being utilized for data-driven agriculture to enhance farming practices and productivity.

Legal and Regulatory Framework

• The IT Rules 2021 regulate digital platforms to ensure compliance and accountability.
• The Supreme Court upheld the validity of Aadhaar in the Puttaswamy judgment in 2017, reinforcing its legal standing.

Bridging the Digital Divide

• There is a significant urban-rural internet gap, with only 30% of women having access to the internet, highlighting the need for inclusive digital access.

Pandemic Resilience

• Initiatives like CoWIN, Aarogya Setu, and UPI ensured the continuity of essential services during the pandemic, showcasing the resilience of digital infrastructure.

Challenges and Way Forward

•  Persistent issues include the digital divide, access to low-end devices, and gaps in digital literacy. 
•  There is a need to address challenges posed by deepfakes, AI regulation, and ensuring algorithmic transparency. 
•  Future efforts should focus on open-source and federated AI, inclusive design, and improving last-mile connectivity to ensure equitable digital access and participation. 

Financial Fraud Risk Indicator (FRI)

Context & Significance

• The integration of the Financial Fraud Risk Indicator (FRI) into real-time telecom and banking systems is a significant step in preventing cyber-enabled financial frauds.
• This move, advised by the Reserve Bank of India (RBI) for June 30, 2025, represents a major inter-agency effort towards enhancing digital financial security as part of the Digital India initiative.
• The FRI aims to bolster the safety of digital transactions, particularly in the Unified Payments Interface (UPI) ecosystem, which is widely used in India.
• By classifying mobile numbers based on fraud risk and integrating this information into banking systems, the FRI helps in real-time detection and prevention of suspicious transactions.
• This initiative is relevant to governance and cyber security, as it involves inter-ministerial coordination between the Department of Telecommunications (DoT), RBI, and the Indian Cyber Crime Coordination Centre (I4C).
• It also aligns with various schemes and frameworks under the Digital India Mission and RBI’s Cyber Security Framework.

What is Financial Fraud Risk Indicator (FRI)

The Financial Fraud Risk Indicator (FRI) is a metric used to assess the risk of financial fraud associated with mobile numbers. It categorizes mobile numbers into three risk levels: Medium, High, and Very High fraud risk.

Development and Launch

• The FRI was developed by the Digital Intelligence Unit (DIU) of the Department of Telecommunications (DoT) and launched in May 2025.
• It is based on various inputs, including data from the Indian Cyber Crime Coordination Centre (I4C), banks’ internal fraud alerts, and the Mobile Number Revocation List (MNRL) maintained by the DIU.

Inputs for FRI

• I4C’s Cybercrime Portal (NCRP): Provides data on reported cybercrime incidents.
• Chakshu Platform: Offers additional information related to fraud risks.
• Banks’ Internal Fraud Alerts: Includes alerts generated by banks based on their fraud detection systems.
• Mobile Number Revocation List (MNRL): Maintained by the DIU, this list identifies mobile numbers that have been revoked due to fraudulent activities.

How It Helps Banks Prevent Cyber Frauds

The Financial Fraud Risk Indicator (FRI) aids banks in preventing cyber frauds through real-time integration and risk scoring of phone numbers. Here’s how it works:

• Real-time API Integration: Banks integrate FRI with the Department of Telecommunications (DoT) systems via APIs. This allows for real-time data exchange and decision-making.
• Declining Suspicious Transactions: When a transaction is initiated, the system checks the phone number associated with it. If the number is flagged as Medium, High, or Very High risk, the transaction can be declined automatically.
• Proactive Customer Alerts: If a transaction is flagged as suspicious but not immediately declined, the system can alert the customer proactively. This helps in verifying the transaction before it is completed.
• Delaying High-Risk Transactions: For transactions involving high-risk numbers, banks can choose to delay the processing. This gives them time to verify the transaction details with the customer.
• Risk Scoring: FRI enables banks to score phone numbers based on their risk associated with fraud attempts. This scoring helps in identifying potentially fraudulent activities linked to specific numbers.
• Adoption by Banks: Several banks and fintech companies, including HDFC, PNB, ICICI, Paytm, PhonePe, and India Post Payments Bank (IPPB), have already implemented FRI to enhance their fraud prevention measures.

Relevance for UPI & Digital Payments

• The Financial Fraud Risk Indicator (FRI) is crucial for safeguarding the Unified Payments Interface (UPI) ecosystem, which is India’s most widely used payment system.
• By classifying mobile numbers based on their fraud risk and integrating this information into banking systems, FRI helps in real-time detection and prevention of suspicious transactions.
• This not only enhances user confidence in digital payments but also supports financial inclusion by reducing the vulnerability to fraud.
• FRI is part of a broader effort under the Digital India Mission to improve digital financial security and is aligned with various frameworks such as the National Cybercrime Reporting Portal (NCRP) and RBI’s Cyber Security Framework.

Relevant Schemes & Frameworks

• Digital India Mission:. government initiative aimed at enhancing digital infrastructure and services across the country.
• National Cybercrime Reporting Portal (NCRP):. platform for reporting cybercrime incidents, part of the I4C framework.
• Indian Cyber Crime Coordination Centre (I4C): An initiative to coordinate various aspects of cyber crime prevention and response in India.
• Digital Intelligence Platform (DIP): DoT’s fraud intelligence backbone that supports initiatives like FRI.
• RBI’s Cyber Security Framework:. framework issued by the Reserve Bank of India to enhance cyber security measures in the banking sector, updated post-2016.

Syllabus Interlinkages

GS Paper II – Governance

• Government policies for transparency and accountability.
• Inter-ministerial coordination involving DoT, RBI, and I4C.
• Role of institutions in securing citizens’ rights, with a focus on cybersecurity as a citizen service.

GS Paper III – Internal Security & Technology

• Challenges to internal security posed by communication networks.
• Cybersecurity and digital fraud prevention measures.
• Role of technology in detecting financial fraud.
• Use of Information and Communication Technology (ICT) in governance and public service delivery.

Additional Relevant Data

Cybercrime Complaints in India

• In 2023, India witnessed over 13.2 lakh complaints related to cybercrime, highlighting the growing concern and prevalence of such incidents.
• This data is sourced from the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA).

Financial Cybercrime Cases

• The National Crime Records Bureau (NCRB) reported over 68,000 cases of financial cybercrime in 2023, specifically involving digital payments.
• This underscores the increasing vulnerability and incidents of cybercrime in the financial sector.

UPI Fraud Incidents

• The National Payments Corporation of India (NPCI), through Right to Information (RTI) reports, indicated that approximately 85,000 complaints related to UPI fraud were reported in 2023.

Digital Payment Volume

• For the fiscal year 2023–24, India recorded a staggering 13,462 crore transactions in digital payments, reflecting the growing trend and reliance on digital payment methods.

Loss due to Bank Frauds

• The Reserve Bank of India (RBI) reported a loss of ₹13,930 crore due to bank frauds, including cyber frauds, in the fiscal year 2023.
• This figure is detailed in the RBI Financial Stability Report of 2023.

India’s Internet User Base

• The Telecom Regulatory Authority of India (TRAI) estimated that India had 96.96 crore internet users in 2024, showcasing the vast and growing internet penetration in the country.

Rise in Mobile-Based Financial Frauds

• Between 2020 and 2023, there was over a 40% increase in mobile-based financial frauds, as reported by CERT-In and I4C estimates.

Challenges & Criticism

Privacy Concerns

• The real-time data sharing involved in the Financial Fraud Risk Indicator (FRI) may raise concerns about surveillance and privacy.
• There is a lack of clear rules regarding user consent for data sharing and redressal mechanisms in case of wrongful flagging of transactions.

Wrong Flags = Service Denial

• Genuine users might face service denial if their transactions are wrongly flagged as suspicious, for instance, due to SIM card misuse.
• Currently, there is no transparent system in place for users to challenge or rectify false alerts, which could lead to inconvenience and frustration.

Data Reliability Issues

• The effectiveness of the FRI depends on the timely and accurate inputs from various portals such as the NCRP and Chakshu.
• If fraud incidents are underreported, it could weaken the reliability and accuracy of the FRI, leading to potential oversight of genuine fraud cases.

Risk of Exclusion

• Users with low technological capabilities may be unfairly blocked from accessing services or may find it difficult to appeal decisions made by the FRI system.
• This could exacerbate the digital divide and leave vulnerable populations without access to essential services.

Uneven Adoption

• There may be disparities in how different banks and fintech companies implement the FRI, leading to inconsistent levels of fraud prevention.
• Additionally, players not regulated by the RBI may not be covered under the FRI framework, creating gaps in fraud detection and prevention.

Turf Clashes Possible

•  There is a possibility of overlapping roles between the DoT and RBI in the implementation of the FRI, which could lead to delays in taking necessary actions. 
•  Clarifying the roles and responsibilities of each agency is crucial to ensure smooth and effective implementation of the FRI.