RBI Introduces '.bank.in' Domain To Combat Digital Fraud

In a move to tackle rising digital financial fraud, Reserve Bank of India (RBI) Governor Sanjay Malhotra unveiled several key initiatives on Friday, including the introduction of an exclusive '.bank.in' internet domain for Indian banks and stricter authentication protocols for digital transactions.

As part of its efforts to reduce online fraud, the RBI will implement the '.bank.in' domain exclusively for banks in India starting in April 2025. Malhotra explained that this new domain would help customers easily differentiate legitimate banking websites from fraudulent ones. Additionally, a 'fin.in' domain will be introduced to cover the broader financial sector.

Addressing concerns over the surge in digital fraud, Malhotra stressed the need for collective action from all stakeholders. He stated, "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."

As part of these measures, Malhotra announced the extension of additional authentication factors for digital payments. This will now include online international payments to offshore merchants, ensuring a higher level of security for cross-border transactions.

Further enhancing market security, the RBI has also expanded its interest rate derivative products. A new forward contract for government securities will be introduced, benefiting long-term investors like insurance funds. This new addition is aimed at improving pricing efficiency for derivatives linked to government securities and better managing risks in interest rate cycles.

To encourage retail participation in government securities, the RBI has expanded access to the National Debt Securities-Order Matching (NDS-OM) platform, enabling non-bank brokers registered with SEBI to participate in secondary market trading. This move is expected to deepen the bond market and increase participation from non-bank financial entities.

Additionally, Malhotra revealed that the RBI will form a working group to review trading and settlement timings across its five regulated financial markets, with a report expected by April 30, 2025.

Regarding the banking sector’s performance, Malhotra reported that the credit-deposit ratio (CDR) stood at 80.8% in January 2025, stable compared to September 2024. He reassured that banks' liquidity buffers remain adequate, with strong returns on assets (RoA) and equity (RoE), despite a slight moderation in net interest margins. The financial system for Non-Banking Financial Companies (NBFCs) also remains robust.

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