In a decisive move to combat financial fraud and enhance cybersecurity in digital banking, the Reserve Bank of India (RBI) has announced the rollout of an exclusive internet domain, ‘bank.in’, for Indian banks.
This initiative is designed to mitigate cybersecurity threats, curb phishing attacks, and reinforce trust in digital financial transactions.
The Institute for Development and Research in Banking Technology (IDRBT) will be the sole registrar for the new domain, with registrations set to commence in April 2025.
RBI Governor Sanjay Malhotra has assured that detailed guidelines for banks will be issued separately.
Furthermore, he indicated that RBI intends to extend a similar domain-based security approach to non-bank financial entities through a dedicated ‘fin.in’ domain in the future.
Strengthening Digital Payment Security
In an additional move to enhance cybersecurity, RBI has extended the mandatory additional factor of authentication (AFA) requirement for digital payments to international transactions using cards issued in India.
This measure is expected to provide an extra layer of protection where overseas merchants support AFA. The draft circular outlining the new regulation will soon be released for feedback from stakeholders.
RBI’s Broader Cybersecurity Initiatives
The introduction of the ‘bank.in’ domain is the latest in a series of measures undertaken by RBI to fortify the financial ecosystem against cyber threats.
During its last Monetary Policy Committee (MPC) meeting on December 6, 2024, RBI launched an AI/ML-powered system called MuleHunter.AI to detect and combat mule bank accounts used for fraudulent transactions.
Additionally, the central bank has now permitted small finance banks (SFBs) to offer pre-sanctioned credit lines through the Unified Payments Interface (UPI), aiming to broaden financial inclusion.
Economic Implications and Cyber Fraud Trends
The need for heightened cybersecurity measures is underscored by alarming statistics: according to government data, India witnessed financial losses amounting to INR 11,333 crore due to cyber fraud in the first nine months of 2024.
Additionally, the country reported 6.32 lakh cases of UPI fraud, amounting to INR 485 crore, in the first half of the financial year 2024-25 (FY25).
With cyber fraud on the rise, RBI’s proactive approach in implementing robust security frameworks aims to protect consumers and strengthen the resilience of India’s banking and financial ecosystem.
