SIZE OF INDIA’S DIGITAL BANKING

As India moves toward becoming a 1 trillion dollar digital economy by 2025, it also requires securing its financial infrastructure. It is expected that by 2047, the country’s digital economy is expected to touch 5-6 trillion dollars, when India's GDP will be touching 25-30 trillion dollars.

India’s banking sector is experiencing a remarkable digitalisation, which has brought a kind of revolution in the ways banking is performed by the common users. Digital transactions have surged which can be seen from the data that on an average 1500-1800 crore UPI transactions happen every month, transacting 18-20 lakh crore every month. This is huge!

Therefore now the focus should be towards strengthening digital security as huge amounts are transaction digitally on a daily basis.

THREATS TO DIGITAL ECONOMY

The rapid shift towards digitalisation has also created new opportunities for cybercriminals. Online banking frauds have become increasingly sophisticated, leading to massive financial losses. As per a report, India is one of the top global target for mobile malware attacks, with 28% of all incidents worldwide occurring in the country. 

According to data, the first half of the fiscal year 2024 saw 18,461 reported bank fraud, leading to massive financial losses of ₹21,367 crore. Many of these frauds stem from phishing attacks, where cybercriminals create fake websites that closely resemble legitimate banking portals.

NEW DOMAINS FOR BANKS AND NBFCs

Recognizing the urgent need for stronger cybersecurity measures, RBI has introduced exclusive domains “bank.in” to be used by the banks and “fin.in” to be used by non-banking financial entities. Under this initiative, all licensed banks are required to migrate their digital banking domains to the exclusive “bank.in” domain by October 31, 2025. This standardized and easily recognizable online identity aims to significantly reduce the risk of phishing attacks by providing customers with a clear way to identify legitimate banking websites. 

This decision marks a decisive step toward combating financial frauds, safeguarding India’s digital economy and enhancing trust among consumers.

BENEFITS OF NEW DOMAINS

1. Clear Identification: Customers can quickly verify the authenticity of a banking website. Any domain outside the “bank.in” or “fin.in” ecosystem will immediately raise red flags, reducing the chances of users falling victim to phishing scams.
2. Enhanced Trust and Security: A standardized domain system will augment consumer confidence in online banking, encouraging greater digital adoption. Knowing that all legitimate banks will only operate under “bank.in” removes ambiguity and improves cybersecurity awareness among users.
3. Reduced Fraud Costs: By making it harder for cybercriminals to impersonate banks, the initiative could save the Indian banking system billions of rupees annually. Given the alarming fraud losses within just six months of last year, this plan can play a key role in mitigating future financial damages.
4. Would Strengthen India’s Digital Economy

OTHER INITIATIVES BY RBI

In addition to this, RBI has intensified its focus on fraud prevention. In 2024, it introduced revised Master Directions on Fraud Risk Management, expanding the responsibilities of bank boards in overseeing cybersecurity measures. Now the bank boards are required to enforce internal audit frameworks, internal control mechanisms, and ensure that the banks proactively tackle cybersecurity risks. 

Customers should also be provided genuine banking websites and avoid fraudulent ones. This is where the requirement of this new domain comes. 

By ensuring secure digital transactions through initiatives like these, the nation is taking proactive steps to bridge this security gap. With these systems, the RBI is not only protecting existing digital banking users but also paving the way for greater financial inclusion by instilling confidence in those who are yet to adopt digital banking services.