In a bid to bolster the resilience of the Indian banking sector against cyber fraud, Reserve Bank of India (RBI) Governor Sanjay Malhotra made a significant announcement on Friday. The Governor revealed the launch of a new and exclusive internet domain, ‘bank.in’, which will be exclusively available for registered banks across the country.
The primary objective behind this initiative is to provide banks with a secure and credible digital identity, thereby offering protection to customers against phishing scams and fraudulent websites. The registration process for ‘bank.in’ is set to commence in April 2025. Moreover, the RBI has plans to introduce another dedicated domain in the future, ‘fin.in’, which will cater to the broader financial sector, further boosting digital security within the ecosystem.
With the rapid digital transformation taking place in India’s banking and financial landscape, institutions are increasingly vulnerable to cyber threats such as phishing schemes, cyberattacks, and financial frauds. The introduction of ‘bank.in’ is expected to play a crucial role in mitigating the risk posed by fraudulent banking websites, ultimately safeguarding public trust.
Furthermore, the RBI is gearing up to implement Additional Factor of Authentication (AFA) for international digital payments made to offshore merchants that support this security feature. This additional layer of protection aims to enhance the security of transactions conducted across borders, ensuring a safer digital payment environment for customers.
The central bank’s heightened focus on cybersecurity aligns with its broader commitment to protecting India’s digital banking ecosystem from advanced cyber threats stemming from AI-driven frauds, deepfake scams, and evolving malware attacks.
In a simultaneous move, the RBI announced a 25 basis points (bps) reduction in the benchmark repo rate, bringing it down to 6.25%. This marks the first rate cut since 2019 and was decided upon at the conclusion of the Monetary Policy Committee (MPC) Meeting held in February 2025.
The reduction in the repo rate is expected to provide relief to borrowers by making loans more affordable, consequently stimulating economic growth against a backdrop of global economic uncertainties. Prior to this cut, the repo rate had remained steady for an extended period, with the last policy meeting in December 2024 maintaining the rate at 6.50%.
Governor Malhotra also shared the central bank’s inflation outlook for the financial year 2025-26, forecasting it to remain at 4.2%. This projection is in line with the RBI’s objective of maintaining price stability while fostering economic expansion.
In addition to these developments, the RBI has initiated a comprehensive review of trading and settlement timings across markets under its regulation. This assessment seeks to optimize trading hours, improve market efficiency, and align with international best practices in financial market operations.
The recent decisions taken by the RBI underscore a multi-faceted approach that addresses both financial stability and cybersecurity concerns. While the repo rate cut is poised to revitalize economic activity, the launch of ‘bank.in’ and plans for ‘fin.in’ emphasize the central bank’s dedication to strengthening digital banking infrastructure in the face of escalating cyber threats.
In the backdrop of mounting instances of online banking frauds, deepfake scams, and unauthorized digital transactions in India, the proactive measures undertaken by the RBI indicate a robust regulatory framework designed to safeguard the country’s financial ecosystem.
As digital transactions continue to proliferate, the RBI’s cybersecurity initiatives are set to play a pivotal role in ensuring a secure and resilient banking environment for millions of Indians. Through these concerted efforts, the central bank is poised to fortify the nation’s financial landscape against emerging cyber risks, fostering greater trust and confidence among customers and stakeholders alike.