Mumbai:
In a significant move to bolster the security of digital transactions and combat the rising tide of financial frauds, the Reserve Bank of India (RBI) has announced the implementation of an exclusive ‘.bank.in’ domain for Indian banks, along with stricter authentication protocols. This initiative, unveiled by RBI Governor Sanjay Malhotra during the Monetary Policy announcement, aims to differentiate legitimate banking websites from fraudulent ones and extend additional security measures to international digital payments.
Starting April 2025, the RBI will introduce the ‘.bank.in’ domain exclusively for Indian banks. This move is designed to help customers easily identify genuine banking websites, thereby reducing the risk of falling prey to phishing and other cyber scams. The new domain will serve as a trusted marker, enhancing the trust and security of online banking services.
In addition to the ‘.bank.in’ domain, the RBI plans to introduce a ‘fin.in’ domain for the broader financial sector, including fintech companies, non-banking financial companies (NBFCs), and other financial service providers. This dual-domain approach will create a more unified and secure digital ecosystem for the entire financial industry.
RBI Governor Sanjay Malhotra emphasized the critical need for collective action from all stakeholders to address the surge in digital fraud. The RBI has been proactive in enhancing digital security through various measures, including the introduction of additional authentication factors for digital payments.
The RBI is extending the requirement for an additional factor of authentication (AFA) to online international transactions made to offshore merchants. This measure, already in place for domestic transactions, will ensure that cross-border digital payments are equally secure. The AFA will be mandatory for international card-not-present transactions where the overseas merchant is enabled for such authentication.
To help market participants manage interest rate risks more effectively, the RBI has expanded its suite of interest rate derivative products. A new forward contract for government securities will be introduced, benefiting long-term investors such as insurance funds by enabling more efficient pricing of derivatives linked to government securities.
The RBI has announced expanded access to the NDS-OM platform, which facilitates secondary market trading of government securities. Non-bank brokers registered with SEBI will now be able to access this platform, further deepening the bond market and increasing participation from non-bank financial entities.
A working group will be set up to conduct a comprehensive review of trading and settlement timings across the five different RBI-regulated financial markets. The group, comprising representatives from various stakeholders, will submit its report by April 30, 2025.
As of January 2025, the credit-deposit ratio (CDR) of banks stood at 80.8%, indicating stable financial health. Banks maintain adequate liquidity buffers, with strong Return on Assets (RoA) and Return on Equity (RoE), despite a moderation in net interest margins. The financial system for Non-Banking Financial Companies (NBFCs) also remains robust.
