RBI MPC Cracks Down on Digital Payment Fraud! New Domain and Security Rules Announced, Check

RBI Digital Fraud: The Reserve Bank of India (RBI) is stepping up cybersecurity efforts to tackle rising digital payment fraud. RBI Governor Sanjay Malhotra has introduced a dedicated internet domain, ‘bank.in’, exclusively for Indian banks. This move aims to enhance security, reduce phishing attacks and build trust in digital banking services.

Exclusive ‘Bank.in’ Domain for Indian Banks

To safeguard online banking transactions, RBI has assigned the Institute for Development and Research in Banking Technology (IDRBT) as the exclusive registrar for the new ‘bank.in’ domain. Registration will begin in April 2025, and detailed guidelines will be issued soon.

Additionally, the RBI plans to launch another domain, ‘fin.in’, for non-banking financial entities to further strengthen cybersecurity across the financial sector.

Strengthening Security with Additional Factor Authentication (AFA)

To improve online transaction safety, the RBI has made Additional Factor Authentication (AFA) mandatory for cross-border Card Not Present (CNP) transactions.

Currently, AFA is required only for domestic digital payments, helping prevent fraud and boost customer confidence. With this expansion, international online transactions using Indian-issued cards will also require AFA, provided the overseas merchant supports it.

Ensuring Secure Digital Transactions

The RBI’s Alternative Authentication Mechanism (AFA) guidelines aim to improve security by adding extra layers of authentication for digital transactions. Financial institutions can adopt a risk-based approach, considering factors like transaction value, origin, and customer risk profile to determine the appropriate AFA measures.

A draft circular will be released soon for stakeholder feedback, ensuring a comprehensive and effective security framework.

A Step Towards Safer Digital Payments

With the introduction of ‘bank.in’, new authentication measures, and improved domain security, the RBI MPC is taking proactive steps to protect users from digital payment fraud. These efforts will make online transactions safer and enhance trust in India’s growing digital economy.