RBI Introduces Exclusive ‘.bank.in’ Domain to Curb Financial Fraud

Governor Sanjay Malhotra announces stricter authentication measures and new financial security initiatives

Mumbai, February 7: In a major move to enhance digital security and combat financial fraud, Reserve Bank of India (RBI) Governor Sanjay Malhotra unveiled an exclusive “.bank.in” internet domain for Indian banks while announcing the Monetary Policy on Friday. The initiative aims to help customers distinguish legitimate banking websites from fraudulent ones.

“The Reserve Bank shall implement the bank.in exclusive Internet domain for Indian banks,” Malhotra said.

The RBI has set April 2025 as the launch date for this initiative. Additionally, a ‘fin.in’ domain will be introduced for the broader financial sector.

Stronger Security Measures for Digital Transactions

With a sharp rise in digital fraud cases, Malhotra stressed the need for collective action from all stakeholders to strengthen security in banking and payment systems.

“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,” he said.

The RBI has already implemented additional authentication measures for digital transactions. Now, these security measures will be extended to international online payments made to offshore merchants.

“The introduction of an additional factor of authentication for digital payments is one such measure. It is now proposed to extend this to online international digital payments made to offshore merchants who are enabled for such authentication,” Malhotra added.

Boosting Financial Market Accessibility

To support market participants in managing interest rate risks, 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. This will enhance risk management and enable efficient pricing of derivatives linked to government securities.

To increase retail participation in government securities, the RBI has also expanded access to the NDS-OM platform, which facilitates secondary market trading of government securities. SEBI-registered non-bank brokers will now have access to this platform, deepening the bond market and encouraging broader participation.

Review of Financial Market Trading Timings

The RBI announced the formation of a working group to conduct a comprehensive review of trading and settlement timings across five different RBI-regulated financial markets. The group, comprising key stakeholders, will submit its report by April 30, 2025.

Stable Banking Sector Performance

Malhotra reassured that the credit-deposit ratio (CDR) of banks remains stable at 80.8% as of January 2025, similar to its level in September 2024. He also highlighted that liquidity buffers in banks remain adequate, with strong Return on Assets (RoA) and Return on Equity (RoE), despite a slight moderation in net interest margins.

Additionally, the financial health of Non-Banking Financial Companies (NBFCs) remains strong, reinforcing overall market confidence.