RBI Unveils ‘.bank.in’ Domain to Combat Digital Fraud

RBI Governor Sanjay Malhotra announced a significant step towards combating digital fraud and enhancing online banking security. On Friday, during the unveiling of the RBI’s latest monetary policy, Malhotra revealed plans to implement the exclusive ‘.bank.in’ internet domain for Indian banks, aimed at reducing financial fraud in digital spaces.

Starting in April 2025, Indian banks will transition to using the ‘.bank.in’ domain, distinguishing legitimate banking websites from fraudulent ones. Additionally, a ‘fin.in’ domain will be introduced for broader financial sector websites.

Addressing the surge in digital fraud, Malhotra emphasized the need for collective action from all stakeholders to address the growing concern. He confirmed that these measures are part of a series of initiatives to strengthen the security of banking and payment systems.

Further bolstering digital security, the RBI is extending its additional factor of authentication (AFA) for digital transactions. This enhancement will now also apply to international online payments made to offshore merchants, ensuring a safer environment for cross-border digital transactions.

In addition to these security measures, the RBI unveiled new steps to better manage interest rate risks. This includes the introduction of a new forward contract for government securities, primarily benefiting long-term investors, such as insurance funds.

To encourage greater retail participation in government securities, the RBI will expand access to the NDS-OM platform, enabling non-bank brokers to participate more actively in secondary market trading of government securities.

Furthermore, the RBI will form a working group to review trading and settlement timings across various financial markets regulated by the Reserve Bank. This review will help adapt to the changing dynamics of the market, with a report due by April 30, 2025.

Despite a moderation in net interest margins, Malhotra reassured that liquidity buffers within banks are sufficient, with healthy Return on Assets (RoA) and Return on Equity (RoE). The financial system, including Non-Banking Financial Companies (NBFCs), remains robust, ensuring the stability of India’s financial ecosystem.