RBI Governor Sanjay Malhotra, while unveiling the Monetary Policy on Friday, introduced an exclusive ".bank.in" internet domain for Indian banks to curb financial fraud.
He also announced stricter authentication protocols for digital transactions to enhance security in the banking system.
Malhotra stated, "The Reserve Bank shall implement the bank.in exclusive Internet domain for Indian banks." This initiative, set to be implemented from April 2025, aims to help customers distinguish legitimate banking websites from fraudulent ones.
Additionally, a separate ".fin.in" domain will be introduced for the broader financial sector.
Expressing concerns over rising digital fraud cases, Malhotra emphasized the need for collective action.
"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 further strengthen security, the RBI has extended additional authentication measures to online international transactions made to offshore merchants.
Malhotra added, "The introduction of an additional factor of authentication for digital payments is one such measure. It is now proposed to extend this to online international digital payments made to offshore merchants who are enabled for such authentication."
This step ensures safer cross-border transactions and minimizes fraud risks.
To help market participants manage interest rate risks effectively, the RBI will introduce a new forward contract for government securities. This will benefit long-term investors such as insurance funds, allowing more efficient pricing of derivatives linked to government securities.
In an effort to boost retail participation in government securities, the RBI will expand access to the NDS-OM platform, which facilitates secondary market trading of government bonds.
This move will allow non-bank brokers registered with SEBI to access the platform, deepening the bond market and increasing participation from non-bank financial entities.
Acknowledging evolving market conditions, the RBI will establish a working group to conduct a comprehensive review of trading and settlement timings across five different RBI-regulated financial markets. The group, consisting of various market stakeholders, is expected to submit its report by April 30, 2025.
The credit-deposit ratio (CDR) of banks stood at 80.8% as of January 2025, remaining stable compared to September 2024. Malhotra reassured that liquidity buffers in banks remain adequate, with strong Return on Assets (RoA) and Return on Equity (RoE), despite a slight moderation in net interest margins.
He also confirmed that the financial system for Non-Banking Financial Companies (NBFCs) remains robust.