RBI MPC Decision: The central bank made several big announcements along with the cut in repo rate. One of these was a measure to curb financial fraud, which will be implemented from April 2025.
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday announced the monetary policy as well as the latest strategy to deal with financial fraud. RBI has announced to introduce ‘.bank.in’ internet domain for the country’s banks. Along with this, strict authentication protocols were also announced for digital transactions. The RBI Governor said that the Regional Bank will implement bank.in exclusive internet domain for Indian banks.
To reduce online financial fraud, RBI will implement ‘bank.in’ domain exclusively for banks in India from April 2025. He stressed this time that this initiative will enable customers to distinguish legitimate banking websites from fraudulent websites. After this, ‘fin.in’ domain will be introduced for the wider financial sector.
What else is being prepared to curb financial fraud?
Expressing concern over the rise in cases of digital fraud, Malhotra stressed the need for collective action from all stakeholders. He said, “The rise in digital fraud is a matter of concern. This requires action from all stakeholders. The Reserve Bank is taking various measures to enhance digital security in banking and payment systems.” 2-factor authentication will be required for transactions abroad – He said, “The introduction of authentication for digital payments is one such measure. Now it is proposed to extend it to online international digital payments made to such foreign merchants. RBI has already introduced 2-factor authentication for digital payments. This security measure will now be extended to online international transactions made with foreign merchants, which will make cross-border digital payments secure.
Let us tell you that in the 3-day RBI monetary policy meeting held from 5-7 February, it was announced to reduce the repo rate by 25 basis points (0.25%). After this, the repo rate has now come down to 6.25%. With this announcement, the central bank has maintained the economic stance Neutral.
