RBI has announced new cyber security rules to prevent growing online fraud in digital payments. The purpose of launching exclusive domains like 'Bank.in' and 'Fin.in' is to prevent fishing scams, while strong authentication for international transactions will make payments further safe. Banks and NBFCs have been instructed to upgrade their cyber security system to ensure the safety of customers.
Online banking and digital payments have become an important part of today's lifestyle, but with this cyber frauds have also increased. Frauds are now becoming more smart and banks are using techniques like fishing to target customers. To prevent this, the Reserve Bank of India (RBI) has announced several measures to strengthen digital banking security and prevent online fraud.
RBI Governor Sanjay Malhotra announced several steps to increase cyber security during the Monetary Policy Committee (MPC) meeting. These include strong authentication for international transactions, exclusive domains for Indian banks and improving fraud detection systems.
Special 'Bank.in' and 'Fin.in' Domain RBI have launched an exclusive internet domain called 'Bank.in', which will be for Indian banks. This will help prevent fishing attacks, where fraudsters try to steal the information of users by creating fake banking websites. The registration for this domain will start from April 2025.
In addition, RBI plans to launch the 'Fin.in' domain, which will be for financial institutions other than banking, such as non-banking financial companies (NBFCs). This will create a safe ecosystem of digital transactions.
The strong authentication RBI has decided to implement the Additional Authentication Factor (AFA) for international digital payments for online payments. While AFA was already mandatory for domestic transactions, now this rule will also apply to online payments made for offshore merchants.
Many Indians pay foreign websites and services due to growing cross-border e-commerce and international subscriptions. The inclusion of AFA in these transactions will reduce cases of non -allowed payment and fraud.
Cyber criminals are constantly developing their techniques to improve cyber security to banks and NBFCs, so banks and NBFCs also need to strengthen their safety measures. RBI has told financial institutions that:
With these measures, the purpose of RBI is to reduce the weaknesses in the banking sector and to protect millions of Indian customers from financial fraud. Cyber security has become more important than ever before in the increasing era of digital transactions. RBI's new measures – exclusive banking domains, strong payment authentication and improving cyber security framework – all are steps in the right direction. These initiatives can reduce fraud risks and Indian customers will be able to do online banking with more confidence.
