Pune: Reserve Bank of India (RBI) has introduced key regulatory measures aimed at fortifying digital transactions, supporting the auto industry, and providing relief to home loan borrowers.

These initiatives include mandatory Additional Factor Authentication (AFA) for cross-border card-not-present transactions, exclusive domain names for banks, and a 25-basis-point repo rate cut—the first since 2020. Industry leaders have welcomed these measures, citing their potential to enhance security, drive economic growth, and improve consumer confidence.

Stronger Cybersecurity Measures for Digital Payments

As cross-border digital transactions surge, the RBI has mandated AFA for card-not-present transactions to mitigate fraud risks and enhance security. According to Rahul Jain, CFO of NTT DATA Payment Services India, this step will streamline international transactions while ensuring users can transact with greater confidence. Additionally, the introduction of exclusive domains (bank.in and fin.in) for banks and financial institutions is expected to curb phishing attacks and strengthen digital trust among consumers.

Boost for Auto Sector Amid Positive Market Sentiment

The recent 25-bps rate cut, following the income tax relaxations announced in the Union Budget, is expected to benefit the automobile industry. Shailesh Chandra, President of SIAM and MD of Tata Passenger Vehicles & Tata Passenger Electric Mobility, emphasized that lower financing costs will increase vehicle affordability, fostering greater consumer demand and market optimism.

Rate Cut to Spur Housing Market Growth

Girish Kousgi, MD & CEO of PNB Housing Finance, highlighted that lower borrowing costs will make homeownership more accessible, particularly for first-time buyers. The move aligns with the Finance Ministry’s broader fiscal strategy, encouraging investments in the housing sector and boosting market sentiment.

According to Anuj Puri, Chairman of ANAROCK Group, the decision is particularly timely, as home prices have surged by 13-30% in India's top seven cities over the past year. While the rate cut is expected to sustain consumer confidence, its overall impact will depend on how efficiently banks pass on the benefits to borrowers.

CS Setty, Chairman of SBI, described the 25-bps rate cut as a well-communicated and strategic move. He also highlighted additional regulatory changes, including trade settlement revisions and enhanced cyber security for banks, which will improve market transparency and trust in digital banking.