The Reserve Bank of India (RBI) has introduced an exclusive ‘.bank.in’ internet domain for Indian banks as part of measures to enhance digital security. RBI Governor Sanjay Malhotra announced that the initiative, which will take effect in April 2025, aims to help customers identify legitimate banking websites and reduce incidents of financial fraud. Additionally, a ‘.fin.in’ domain will be launched for the broader financial sector.
This move is accompanied by the implementation of stricter authentication protocols for digital transactions to enhance security across both domestic and international payment systems.
Strengthening Security Measures
The RBI has expressed growing concerns over the rise in digital fraud, with Malhotra calling for collective action from stakeholders to address the issue. To further secure transactions, the additional factor of authentication used for domestic digital payments will now apply to international online transactions involving offshore merchants. This is expected to improve the safety of cross-border payments.
Boosting Financial Market Efficiency
In addition to security measures, the RBI announced reforms to improve market risk management and investment efficiency. These include:
- New forward contracts linked to government securities to benefit long-term investors such as insurance funds.
- Expansion of access to the NDS-OM platform, which enables secondary market trading of government securities. SEBI-registered non-bank brokers can now participate, thereby deepening the bond market and encouraging broader financial participation.
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Banking Sector Stability and Credit-Deposit Ratio
The credit-deposit ratio (CDR) stood at 80.8% as of January 2025, reflecting stable banking operations. Malhotra reassured that banks maintain adequate liquidity buffers and strong financial metrics, including Return on Assets (RoA) and Return on Equity (RoE), despite a slight decline in net interest margins.
The RBI also emphasized the continued financial stability of Non-Banking Financial Companies (NBFCs), further reinforcing confidence in India’s banking and financial ecosystem.
These initiatives demonstrate the RBI’s commitment to enhancing digital security, market efficiency, and financial stability amidst evolving threats and opportunities in India’s rapidly growing digital economy.
