In a significant move to combat financial frauds, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced the launch of an exclusive ‘.bank.in’ internet domain for Indian banks, alongside enhanced digital security measures, during the unveiling of the Monetary Policy on Friday.
Malhotra revealed that the RBI will implement the ‘.bank.in’ domain for Indian banks starting April 2025. This initiative is designed to help customers easily distinguish legitimate banking websites from fraudulent ones, thereby reducing online financial frauds. Additionally, the RBI plans to introduce a ‘fin.in’ domain for the broader financial sector in the future.
Addressing the surge in digital fraud, Malhotra emphasized the importance of coordinated efforts by all stakeholders to enhance digital security. “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.
One of the key measures announced is the introduction of an additional factor of authentication for digital payments. This will be extended to international digital payments made to offshore merchants, ensuring greater security for cross-border transactions.
The RBI also unveiled expanded interest rate derivative products to help market participants manage interest rate risks. A new forward contract for government securities will be introduced, providing long-term investors like insurance funds with better tools for risk management and more efficient pricing of derivatives linked to government securities.
To further deepen the bond market, the RBI announced expanded access to the NDS-OM platform, which facilitates secondary market trading of government securities. This will allow non-bank brokers registered with SEBI to access the platform, boosting retail participation and increasing involvement from non-bank financial entities.
Recognizing the need to adapt to changing market dynamics, the RBI will establish a working group to review trading and settlement timings across five different RBI-regulated financial markets. The group, which will include stakeholders from various sectors, is expected to submit its report by April 30, 2025.
As of January 2025, the credit-deposit ratio (CDR) of banks remained stable at 80.8 percent, compared to September 2024. Malhotra reassured that liquidity buffers in banks are adequate, with strong Return on Assets (RoA) and Return on Equity (RoE), despite a slight moderation in net interest margins. The financial system for Non-Banking Financial Companies (NBFCs) also remains strong.
