RBI Governor Sanjay Malhotra has announced the launch of an exclusive ‘.bank.in’ internet domain for Indian banks to curb financial fraud. Alongside this, stricter authentication protocols for digital transactions were introduced as part of the Monetary Policy announcement on Friday.
“The Reserve Bank shall implement the bank.in exclusive Internet domain for Indian banks,” Malhotra stated, adding that the initiative will take effect from April 2025. The move aims to help customers differentiate between legitimate banking websites and fraudulent ones. Additionally, a ‘.fin.in’ domain will be introduced for the broader financial sector.
Expressing concerns over the rising incidents of digital fraud, Malhotra called for collective action from all stakeholders. “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.
To strengthen security further, the RBI will extend the additional factor of authentication for digital payments to online international transactions involving offshore merchants. This measure, already in place for domestic transactions, is expected to enhance the safety of cross-border payments.
In a bid to improve risk management and market efficiency, the RBI has expanded its interest rate derivative offerings. A new forward contract for government securities will be introduced to benefit long-term investors, such as insurance funds, by enabling better pricing of derivatives linked to government securities.
To boost retail participation in government securities, the RBI has also widened access to the NDS-OM platform, which facilitates secondary market trading of these securities. Non-bank brokers registered with SEBI will now be able to access the platform, deepening the bond market and increasing non-bank financial participation.
On the banking front, the credit-deposit ratio (CDR) stood at 80.8% as of January 2025, showing stability compared to September 2024. Malhotra assured that banks maintain sufficient liquidity buffers, with strong Return on Assets (RoA) and Return on Equity (RoE), despite a slight moderation in net interest margins. He also reaffirmed the financial stability of Non-Banking Financial Companies (NBFCs).
With inputs from ANI