RBI (Reserve Bank of India) has announced new security measures to protect banking and financial institutions from rising online fraud. As part of its latest monetary policy, RBI Governor Sanjay Malhotra introduced a special internet domain, ‘.bank.in,’ exclusively for Indian banks.
This new initiative aims to help customers identify genuine banking websites and avoid fraudulent platforms. The registration for ‘.bank.in’ will begin in April 2025, providing an extra layer of cybersecurity for digital banking.
Malhotra emphasized that digital fraud cases are increasing, making it essential for banks and financial institutions to take extra precautions to safeguard customer transactions.
Introduction of ‘.fin.in’ for the Financial Sector
In addition to ‘.bank.in,’ the RBI will launch another exclusive domain, ‘.fin.in,’ for financial institutions beyond traditional banking services. The introduction of this new domain will enhance the security of digital financial services and reduce the risks of phishing attacks.
The RBI stated that the ‘.bank.in’ and ‘.fin.in’ domains will help prevent cyber threats and protect customers from financial scams. These measures will strengthen trust in online banking and payment services while ensuring a safer digital environment.
To further improve security in digital transactions, the RBI has also introduced an additional factor of authentication (AFA) for international online payments. This security measure is designed to protect Indian users from unauthorized transactions when making payments to offshore merchants.
Currently, AFA is already used for domestic payments, but extending it to international transactions will provide an extra safeguard for Indian consumers. With this update, users will have greater control and protection against cyber fraud when making digital payments across borders.
New Financial Measures for Risk Management
To help financial institutions manage risks more effectively, the RBI is introducing forward contracts for government securities. This new tool will allow investors, such as insurance funds and long-term financial players, to handle interest rate fluctuations better.
RBI Governor Malhotra explained that this step will benefit financial institutions by providing improved risk management tools across different economic cycles.
The RBI is also working to expand the government securities market by allowing non-bank brokers registered with the Securities and Exchange Board of India (SEBI) to trade on the Negotiated Dealing System-Order Matching (NDS-OM) platform.
This decision will bring more diversity to the bond market and encourage a more active secondary market for government securities. By allowing more participants, the RBI aims to make India’s bond market stronger and more efficient.
With rising cases of online banking fraud, the RBI’s initiatives to launch ‘.bank.in’ and ‘.fin.in’ domains, strengthen digital payment security, and improve risk management tools will ensure a safer financial system.
These steps will help customers confidently use online banking services while reducing the risks of cyber threats in India’s rapidly growing digital economy.
