Mumbai, Feb 07 – In a major step to curb financial fraud and enhance cybersecurity, RBI Governor Sanjay Malhotra has announced the launch of an exclusive ‘.bank.in’ domain for Indian banks. The initiative, unveiled during the Monetary Policy meeting on Friday, will go into effect from April 2025 and aims to help customers identify legitimate banking websites.
“This exclusive domain will allow customers to distinguish between genuine and fraudulent banking sites,” Malhotra stated. Following this, the RBI also plans to introduce a ‘.fin.in’ domain for the broader financial sector.
Strengthening Security for Digital Transactions
With rising digital fraud cases, Malhotra underscored the importance of collaborative action among stakeholders to safeguard online financial transactions.
“The surge in digital fraud is concerning and demands joint action,” he said. “The Reserve Bank continues to enhance security measures across the banking and payment ecosystem.”
As part of this effort, the RBI is extending its additional factor authentication (AFA) requirement for digital payments. This enhanced security protocol, already in place for domestic transactions, will now apply to online international payments made to offshore merchants, ensuring safer cross-border transactions.
Boosting Market Participation and Risk Management
To help financial institutions manage interest rate risks, the RBI is introducing a new forward contract for government securities. This will benefit long-term investors like insurance funds by improving the pricing of derivatives linked to government bonds and strengthening risk management strategies.
Additionally, to deepen retail participation in the government securities market, the RBI will expand access to the NDS-OM platform—a key platform for trading government securities. Non-bank brokers registered with SEBI will now be able to access this system, broadening market participation beyond traditional banking entities.
Reviewing Trading and Settlement Timings
Acknowledging evolving financial market trends, the RBI will establish a working group to review trading and settlement timings across the five RBI-regulated financial markets. The group, which includes key industry stakeholders, is expected to submit its report by April 30, 2025.
Banking Sector Stability
Despite fluctuations in net interest margins, the banking sector remains stable. The credit-deposit ratio (CDR) stood at 80.8% in January 2025, consistent with September 2024 levels.
Malhotra reassured that liquidity buffers across banks remain strong, with healthy Return on Assets (RoA) and Return on Equity (RoE). He also confirmed that Non-Banking Financial Companies (NBFCs) continue to demonstrate resilience.
With these strategic measures, the RBI aims to fortify the financial ecosystem, enhance digital security, and deepen market participation in the evolving financial landscape.
