Winning Bizness Desk

Mumbai To curb digital fraud, Indian banks and financial companies will change their domain names, i.e., their website URLs. Banks will now have to use bank.in, while Non-Banking Financial Companies (NBFCs) will need to use fin.in. Registration for this change will begin from April 1.

RBI Governor Sanjay Malhotra, after the Monetary Policy Committee (MPC) meeting on Friday, stated that the rise in digital fraud is a matter of concern. Necessary measures must be taken by all stakeholders. The goal of this decision is to increase trust in the financial sector. The rapid digitization of financial services has provided better convenience to customers, but it has also increased cyber threats and digital risks, which are growing day by day.

Initiative aims to reduce cybersecurity threats

The initiative aims to reduce cybersecurity threats and malicious activities like phishing while streamlining secure financial services to enhance trust in digital banking and payment services. The Institute for Development and Research in Banking Technology (IDRBT) will act as the special registrar. Similarly, a decision has been made to ensure the security of non-financial institution customers, with a special domain being provided for them as well.

Requirement is mandatory only for domestic transactions

The RBI has also enhanced security for cross-border 'card-not-present' transactions by enabling additional factor authentication (AFA). With the introduction of AFA for digital payments, transaction security has increased, boosting customers' confidence in adopting digital payments. However, this requirement is mandatory only for domestic transactions. A proposal to enable AFA for international online transactions made with cards issued in India, to ensure the same level of security, will soon be released for stakeholder feedback.