RBI Unveils Exclusive ‘.bank.in’ Domain to Curb Financial Frauds, Strengthens Digital Security Measures
Mumbai, Feb 7: In a significant step towards strengthening cybersecurity in India’s banking sector, Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced the introduction of an exclusive ‘.bank.in’ internet domain for Indian banks. The initiative, unveiled during the Monetary Policy announcement on Friday, aims to combat rising financial frauds and enhance digital transaction security.
“The Reserve Bank shall implement the ‘bank.in’ exclusive internet domain for Indian banks,” Malhotra stated, emphasizing that this move will help customers distinguish genuine banking websites from fraudulent ones. To further secure the financial ecosystem, the RBI also plans to roll out a ‘fin.in’ domain dedicated to the broader financial sector.
Recognizing the surge in digital fraud, the RBI is implementing additional security protocols. Malhotra highlighted that an extra layer of authentication for digital payments will now extend to online international transactions made to offshore merchants. This measure builds on the RBI’s ongoing efforts to fortify digital banking security and protect consumers from cyber threats.
“The surge in digital fraud is a matter of concern. It warrants action by all stakeholders. The Reserve Bank has been taking various measures to enhance digital security in the banking and payment system,” Malhotra stated.
To improve risk management and enhance transparency in interest rate derivatives, the RBI has expanded its suite of financial products. A new forward contract for government securities will be introduced, benefitting long-term investors such as insurance funds. This move is expected to facilitate efficient pricing of derivatives linked to government securities and improve risk management strategies across interest rate cycles.
To encourage greater retail involvement in government securities, the RBI has announced broader access to the NDS-OM platform, a key avenue for secondary market trading. This decision will allow SEBI-registered non-bank brokers to participate, further deepening the bond market and increasing liquidity in the financial system.
Acknowledging evolving market needs, the RBI has set up a working group to review trading and settlement timings across its five regulated financial markets. Comprising industry stakeholders, the group will submit its recommendations by April 30, 2025.
The RBI’s latest data indicates that the credit-deposit ratio (CDR) stood at 80.8% as of January 2025, maintaining stability compared to September 2024. Despite a slight moderation in net interest margins, Malhotra reassured that liquidity buffers remain robust, with strong Return on Assets (RoA) and Return on Equity (RoE) across the banking system. The financial health of Non-Banking Financial Companies (NBFCs) also remains solid, reinforcing overall economic stability.
With these proactive measures, the RBI aims to enhance the resilience of India’s financial ecosystem, ensuring safer transactions, stronger regulatory oversight, and increased investor confidence in the banking and financial markets.
