Mumbai, Feb 7 (IANS): Reserve Bank of India (RBI) Governor Sanjay Malhotra announced on Friday that the central bank is introducing the 'bank.in' exclusive Internet Domain for Indian banks to combat increased instances of fraud in digital payments.
This initiative aims to reduce cyber security threats and malicious activities like phishing; and, streamline secure financial services, thereby enhancing trust in digital banking and payment services.
"The Institute for Development and Research in Banking Technology (IDRBT) will act as the exclusive registrar. The actual registrations will commence in April 2025. Detailed guidelines for banks will be issued separately. Going forward, it is planned to have an exclusive domain viz., 'fin.in' for other non-bank entities in the financial sector," the RBI Governor said.
The RBI is also making Enabling Additional Factor of authentication in cross-border Card Not Present transactions mandatory to ensure another layer of security as is the case for domestic digital payments.
The introduction of an Additional Factor of Authentication (AFA) for digital payments has enhanced the safety of transactions which, in turn, provided confidence to customers to adopt digital payments. This requirement, however, is mandatory for domestic transactions only.
To provide a similar level of safety for online international transactions using cards issued in India, it is proposed to enable AFA for international card not present (online) transactions as well. This will provide an additional layer of security in cases where the overseas merchant is enabled for AFA. The draft circular will be issued shortly for feedback from stakeholders, according to an RBI statement.
The RBI Alternative Authentication Mechanism (AFA) guidelines require an additional layer of authentication for most digital payments. The guidelines aim to increase the security of digital payments.
Issuers can use a risk-based approach to determine the appropriate AFA for a transaction. This approach considers the transaction's value, origination channel, and the risk profiles of the customer and beneficiary.