By Ashwani Mishra, Editor-Technology, 63SATS
In a move aimed at enhancing trust and security in digital banking, The Reserve Bank of India (RBI) has introduced an exclusive internet domain, ‘.bank.in’, for registered banks in India.
This strategic step is designed to help customers identify legitimate banking websites and protect themselves from cyber-related fraud.
The Rationale Behind ‘bank.in’
With financial fraud cases surging at an alarming rate, the RBI has recognized the urgency of strengthening digital security measures.
During a press briefing following the Monetary Policy Committee (MPC) meeting held on Friday 7th February, RBI Governor Sanjay Malhotra emphasized the central bank’s commitment to mitigating cyber threats in the banking sector.
The Institute for Development and Research in Banking Technology (IDRBT) has been designated as the exclusive registrar for the new domain, ensuring stringent oversight and management.
The bank.in domain aims to:
Differentiate genuine banking websites from fraudulent ones.
Strengthen cybersecurity infrastructure within the financial sector.
- Minimize the risk of phishing attacks and other cyber frauds targeting banking customers.
- Enhance consumer confidence in digital transactions.
Tighter Security Protocols and Enhanced Authentication
Alongside the launch of the ‘bank.in’ domain, RBI has also proposed extending two-factor authentication (2FA) for international transactions.
This security layer, already mandatory for domestic digital payments, will now be expanded to international online transactions involving offshore merchants. The initiative is intended to fortify payment security and instill greater confidence among consumers.
Governor Malhotra stressed the need for financial institutions to develop robust incident response and recovery mechanisms, reinforced by periodic testing, to ensure operational resilience against cyber threats. “Banks must proactively implement stronger cybersecurity measures and recovery plans to counter financial fraud,” he asserted.
Alarming Rise in Financial Fraud Cases
Recent data has shown the growing menace of digital fraud in India.
According to RBI statistics, financial fraud cases surged 27% year-on-year, reaching 18,461 cases in the first half of the current fiscal year, compared to 14,480 cases during the same period in the previous year. Even more concerning, the total amount involved in these frauds escalated nearly eightfold, soaring to Rs 21,367 crore, up from Rs 2,623 crore in the previous fiscal period.
With such staggering figures, RBI has reinforced its zero-tolerance policy towards financial fraud and mis-selling practices. Governor Malhotra reiterated that strict actions will be taken against banks and financial institutions found negligent in their cybersecurity obligations.
Expansion to Non-Banking Financial Entities: The ‘.fin.in’ Initiative
In addition to the ‘bank.in’ domain, RBI has also announced plans to introduce ‘.fin.in’, a dedicated domain for non-banking financial institutions. This move aims to create a secure digital ecosystem for financial service providers beyond traditional banks, offering similar safeguards against cyber threats.
Next Steps and Implementation
- IDRBT to oversee the registration process for ‘bank.in’. Banks will receive detailed guidelines on domain registration and cybersecurity protocols.
- Rollout of 2FA for international transactions will be introduced in a phased manner, with a draft circular expected soon for stakeholder feedback.
- Further security enhancements will be considered based on industry feedback and evolving cyber threats.
RBI’s proactive measures signal a firm stance against financial fraud, reinforcing digital trust within India’s banking ecosystem.
By launching ‘bank.in’ and extending two-factor authentication, the central bank is fortifying defenses against cybercriminals and ensuring a safer digital banking experience for consumers. As the financial landscape continues to evolve, such regulatory initiatives will play a crucial role in safeguarding economic stability and consumer confidence in digital payments.
