RBI Introduces Bank.in & Fin.in Domains to Mitigate Digital Payment Fraud
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Synopsis
The RBI is rolling out exclusive internet domains, 'bank.in' and 'fin.in', to bolster security and reduce fraud in digital payments. This initiative, announced by Governor Sanjay Malhotra, aims to enhance trust and safety in financial transactions.
Key Takeaways
- Introduction of 'bank.in' domain for Indian banks.
- Implementation of AFA for cross-border transactions.
- Registrations for the domain begin in April 2025.
- AFA required for digital payments enhances security.
- Feedback from stakeholders on draft circular anticipated.
Mumbai, Feb 7 (NationPress) The Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, declared on Friday that the central bank is launching the exclusive 'bank.in' Internet Domain specifically for Indian banks to tackle the rising occurrences of fraud in digital payments.
This initiative is designed to minimize cybersecurity threats and harmful activities such as phishing, while also streamlining secure financial services, ultimately boosting trust in digital banking and payment solutions.
According to the RBI Governor, The Institute for Development and Research in Banking Technology (IDRBT) will serve as the sole registrar, with actual registrations set to begin in April 2025. Further guidelines for banks will be provided separately. Additionally, plans are in place for an exclusive domain called 'fin.in' for other non-bank entities within the financial sector.
The RBI is also mandating the Enabling Additional Factor of Authentication for cross-border Card Not Present transactions to ensure an added layer of security similar to that of domestic digital payments.
The implementation of an Additional Factor of Authentication (AFA) for digital payments has significantly improved transaction safety, thereby instilling confidence in customers to embrace digital payment methods. Nonetheless, this requirement is currently obligatory only for domestic transactions.
To offer a comparable level of security for online international transactions utilizing cards issued in India, the proposal includes enabling AFA for international card-not-present (online) transactions as well. This measure will introduce an extra layer of security where the overseas merchant supports AFA. A draft circular will be released shortly for stakeholder feedback, according to an RBI statement.
The RBI Alternative Authentication Mechanism (AFA) guidelines necessitate an additional layer of authentication for the majority of digital payments. These guidelines are intended to enhance the security of digital transactions.
Issuers are permitted to apply a risk-based methodology to determine the appropriate AFA for each transaction. This strategy takes into account the transaction value, origin channel, and the risk profiles of both the customer and the beneficiary.
