RBI Guv Sanjay Malhotra cautions lenders against rising digital frauds

Reserve Bnk of India governor on Friday cautioned lenders against rising instances of frauds in digital payments and said that the regulator will launch secure website domain names to curb such fraudulent practices.

"Increased instances of fraud in digital payments are a significant concern," Reserve Bank of India (RBI) Governor Sanjay Malhotra, who is an engineer from the Indian Institute of Technology Kanpur, said while announcing the policy decision.

As Indian banks and consumers adopt new technology, risks of cyber attacks, digital frauds, data breaches and operational failures have increased, with the RBI repeatedly cautioning lenders about growing cyber security risks.

Fraudsters typically use wrong domain names to deceive victims into revealing sensitive information or making fraudulent transactions.

This tactic relies on users not noticing the subtle difference in the lender's domain name.

Exclusive internet domain names, on the other hand, establish a unique online identity for entities, enhancing recognition and credibility.

The governor said the RBI is introducing an exclusive domain name for banks called 'bank.in', while for non-bank entities in the financial sector the domain name will be 'fin.in'.

The Institute for Development and Research in Banking Technology (IDRBT) will act as the exclusive registrar, while actual registrations will commence in April 2025, he said.