RBI Policy 2025: In a significant move to address the growing concerns of cyber threats in the financial sector, the Reserve Bank of India (RBI) has announced the launch of a specialized “fin.in” domain for non-banking financial companies (NBFCs).
This initiative is part of the central bank’s broader strategy to create a secure and integrated digital ecosystem for the financial industry, including fintech firms, NBFCs, and other financial service providers.
The RBI’s decision comes alongside its recent monetary policy update, where it reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut in nearly five years. The introduction of the “fin.in” domain is a proactive step to strengthen cybersecurity measures and safeguard digital transactions from malicious activities such as phishing and fraud.
In its policy statement released on February 7, the RBI highlighted the rising cases of digital payment fraud as a major concern. To counter this, the central bank is also set to launch a “bank.in” domain for Indian banks in April, which will work in tandem with the “fin.in” domain. Both domains will be managed by the Institute for Development and Research in Banking (IDRBT), ensuring a robust framework to protect digital banking services from evolving cyber threats.
Enhancing Trust in Digital Banking
The RBI emphasized that these measures aim to boost trust and confidence in digital banking and payment systems. By creating a secure digital environment, the central bank hopes to encourage more users to adopt digital financial services without fear of cyber risks.
Strengthening International Transactions
In addition to domestic cybersecurity efforts, the RBI is extending its focus to international transactions. The central bank has proposed implementing an Additional Authentication Factor (AFA) for online foreign card transactions. This move ensures that international transactions receive the same level of security as domestic ones.
Under this proposal, Indian cardholders making online purchases from overseas merchants will benefit from an additional layer of authentication, provided the foreign merchant supports AFA. A draft outlining this proposal will soon be released for feedback from stakeholders, reflecting the RBI’s commitment to inclusive and secure financial practices.
Key Takeaways:
- The RBI has introduced a “fin.in” domain for NBFCs to enhance cybersecurity.
- This initiative complements the upcoming “bank.in” domain for Indian banks.
- Both domains aim to create a secure digital ecosystem for the financial industry.
- The RBI is also focusing on securing international transactions through AFA implementation.
By taking these steps, the RBI is not only addressing immediate cybersecurity challenges but also paving the way for a more resilient and trustworthy financial landscape in India.
