Mumbai, Feb 07: In a major move to enhance cybersecurity in the banking sector, the Reserve Bank of India (RBI) has introduced an exclusive ‘.bank.in’ domain for Indian banks. This initiative, announced by RBI Governor Sanjay Malhotra during the Monetary Policy briefing on Friday, aims to curb financial fraud and strengthen digital transaction security.
Exclusive ‘.bank.in’ Domain for Banks
Starting April 2025, all Indian banks will transition to the ‘.bank.in’ domain, making it easier for customers to identify genuine banking websites and avoid fraudulent ones. Following this, the RBI plans to introduce a ‘fin.in’ domain for the broader financial sector.
“The surge in digital fraud is a serious concern and requires collective action from all stakeholders,” Malhotra stated. “This initiative will help customers distinguish legitimate banking websites from fraudulent ones.”
Enhanced Authentication for Safer Digital Payments
In addition to the domain rollout, the RBI is tightening security measures for digital payments by extending additional authentication protocols to international transactions. This means online payments to offshore merchants will also require an extra layer of verification, reducing the risk of unauthorized transactions.
Boosting Market Participation and Risk Management
To help market participants manage 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 improve the pricing of derivatives linked to government securities and enhance risk management across interest rate cycles.
To deepen retail participation in government securities, the RBI is also expanding access to the NDS-OM platform, which facilitates secondary market trading of government securities. Non-bank brokers registered with SEBI will now have access, increasing liquidity and participation from non-bank financial entities.
Reviewing Trading and Settlement Timings
Acknowledging the evolving market dynamics, the RBI will establish a working group to review trading and settlement timings across its five regulated financial markets. The group, comprising key stakeholders, will submit its report by April 30, 2025.
Stable Banking System with Adequate Liquidity
As of January 2025, the credit-deposit ratio (CDR) of banks remains stable at 80.8%, consistent with September 2024 levels. Malhotra reassured that banks maintain strong liquidity buffers, with solid Return on Assets (RoA) and Return on Equity (RoE), despite a slight moderation in net interest margins. The financial health of Non-Banking Financial Companies (NBFCs) also remains robust.
With these initiatives, the RBI aims to strengthen digital security, protect consumers from fraud, and enhance market efficiency in India’s financial ecosystem.
