Articles on 27 April 2025

What’s in Today’s Article?

• Migration to .bank.in Latest News
• Migration to ‘.bank.in’ Domain
• Current Domain Usage and Transition to ‘.bank.in’ Domain
• Rationale Behind the Domain Change
• Migration to .bank.in FAQ’s

Migration to .bank.in Latest News

• The Reserve Bank of India (RBI) has directed banks to migrate to the exclusive '.bank.in' domain by October 31, 2025, to combat rising digital payment frauds. 
• This move aims to enhance cybersecurity and strengthen trust in India's digital banking and payment services.

Migration to ‘.bank.in’ Domain

• The Reserve Bank of India (RBI) has operationalised the exclusive ‘.bank.in’ internet domain for Indian banks and directed all banks to migrate to it by October 31, 2025.
  • A domain name serves as a unique and easy-to-remember address for accessing websites on the internet. 
• This step aims to enhance cybersecurity and strengthen trust in digital banking services.

Implementation and Management

• The Institute for Development and Research in Banking Technology (IDRBT) has been authorised to act as the exclusive registrar for the ‘.bank.in’ domain. 
• The authorisation comes from the National Internet Exchange of India (NIXI), under the Ministry of Electronics and Information Technology (MeitY).
  • NIXI is a not-for-profit organisation set up to enable Internet Service Providers (ISPs) to route domestic internet traffic within India, improving service quality and reducing international bandwidth costs.

Significance of the ‘.IN’ Domain

• The ‘.IN’ domain is India’s Country Code Top Level Domain (ccTLD), symbolising national identity on the global internet.
  • A ccTLD is a two-letter code that represents a specific country or territory on the internet. 
  • It's used in a website's domain name to indicate the geographic location or affiliation of the website. 
  • Example - .us for the United States, .ca for Canada, and .in for India. 

Current Domain Usage and Transition to ‘.bank.in’ Domain

• At present, banks in India use generic domains like ‘.com’ or ‘.co.in’ for their websites.

Transition to ‘.bank.in’ Domain

• With RBI’s directive, all banks will migrate to the exclusive ‘.bank.in’ domain by October 31, 2025. 
• Until the full migration, banks will maintain both their old and new domains, with the old domain redirecting users to the new ‘.bank.in’ website.

Customer Guidance

• Post-migration, customers should verify that their bank’s website and any official emails end with ‘.bank.in’ to confirm authenticity and avoid fraud.

Rationale Behind the Domain Change

• The rapid digitalisation of financial services has increased exposure to cyber threats and digital risks, leading to a surge in sophisticated digital frauds. 
• These frauds pose reputational, operational, and business risks, and threaten financial stability by eroding customer trust.

RBI’s Response

• To combat rising frauds, the RBI announced the introduction of the exclusive ‘.bank.in’ internet domain for Indian banks during the February 2025 monetary policy.

Issues with Existing Domains

• Currently, anyone can register domain names with minor alterations (e.g., using "0" instead of "O"), making it hard for customers to distinguish real bank websites from fake ones, leading to phishing and fraud.

Advantages of the ‘.bank.in’ Domain

• Only RBI-regulated banks will be allowed to register under the ‘.bank.in’ domain, making it difficult for fraudsters to create fake banking websites. 
• This move will help reduce cyber threats, prevent phishing attacks, and enhance trust in digital banking and payment services.

Rising Digital Payment Frauds

• According to the RBI, during April–September 2024, internet and card frauds accounted for about 20% of the total amount involved and nearly 84% of the total number of fraud cases. 
• In the first half of FY24, India reported 18,461 banking frauds amounting to ₹21,367 crore. 
• Phishing attacks using fake banking websites were a major cause.

Strengthening India’s Digital Economy

• With a goal to become a $1 trillion digital economy by 2025 and $5.4–6.9 trillion by 2047, protecting digital transactions is crucial. 
• The RBI’s domain initiative supports secure digital growth and encourages financial inclusion.

Migration to .bank.in FAQ’s

Q1. Why are banks migrating to the ‘.bank.in’ domain?

Ans. To improve cybersecurity and combat rising digital payment frauds in India’s digital banking services.

Q2. When is the migration deadline for banks?

Ans. Banks must migrate to the ‘.bank.in’ domain by October 31, 2025, as per RBI's directive.

Q3. Who manages the ‘.bank.in’ domain?

Ans. The Institute for Development and Research in Banking Technology (IDRBT) manages the domain under NIXI’s authorization.

Q4. Why is the ‘.bank.in’ domain important?

Ans. It ensures only RBI-regulated banks can register, reducing fraudulent banking websites and enhancing customer trust.

Q5. What issues exist with current banking domains?

Ans. Fraudsters can register domains with minor alterations, making it hard for users to distinguish real bank websites from fake ones.

Source:  IE | BT

What’s in Today’s Article?

• IndiaAI Mission Latest News
• Introduction
• About the Sarvam AI Model Initiative
• Model Variants Under Development
• Strategic Significance of the Project
• The IndiaAI Mission and National AI Infrastructure
• Challenges and Opportunities Ahead
• Future Prospects
• IndiaAI Mission FAQs

IndiaAI Mission Latest News

• The government has selected Bengaluru-based start-up Sarvam to build the country’s first indigenous artificial intelligence (AI) large language model (LLM) amid waves made by China’s low cost model DeepSeek.

Introduction

• In a landmark move to bolster India’s strategic autonomy in artificial intelligence (AI), Bengaluru-based start-up Sarvam AI has been selected to build the country’s first homegrown sovereign large language model (LLM). 
• The project, undertaken under the government’s ambitious ₹10,370 crore IndiaAI Mission, aims to create a robust AI infrastructure fully developed, deployed, and optimized within India. 
• This development marks a critical step toward ensuring India’s leadership in the AI domain and promoting domestic innovation through indigenous capabilities.

About the Sarvam AI Model Initiative

• The government chose Sarvam after a rigorous selection process involving 67 applicants. The start-up will receive extensive support, including access to 4,000 high-end GPUs for six months to build the model from scratch. 
• The GPUs will be provided through companies such as Yotta Data Services, Tata Communications, and E2E Networks, which were separately empanelled to create AI data centres in India.
• The model, to be built entirely using local talent and infrastructure, will have 70 billion parameters, positioning it to compete with some of the best global AI models. 
• According to Sarvam, the LLM will focus on advanced reasoning, voice-based tasks, and fluency in Indian languages, making it uniquely suited for India's diverse population.

Model Variants Under Development

• Sarvam AI plans to develop three key variants of its LLM:
  • Sarvam-Large: Designed for advanced reasoning and complex generation tasks.
  • Sarvam-Small: A lightweight model optimized for real-time interactive applications.
  • Sarvam-Edge: A compact model tailored for on-device processing, enabling AI capabilities on mobile and IoT devices.
• These variants aim to cater to a wide range of applications, from citizen services to enterprise solutions, ensuring adaptability across various use cases.

Strategic Significance of the Project

• This initiative goes beyond technological advancement; it is a strategic move to establish critical national AI infrastructure. 
• The company emphasized that the goal is to create multi-modal, multi-scale foundation models that are not just functional but deeply integrated with Indian languages and societal needs.
• For citizens, this means AI systems that feel familiar and culturally relevant. 
• For enterprises, it unlocks the potential to harness AI capabilities without concerns over data sovereignty, as all processes will remain within India's borders.

The IndiaAI Mission and National AI Infrastructure

• The IndiaAI Mission, approved by the Union Cabinet, is focused on scaling India's AI ecosystem by investing in compute capacity, skilled research talent, datasets, AI applications, and trusted AI practices. 
• One of its key initiatives is the IndiaAI Compute Capacity program, which aims to deploy over 10,000 GPUs to democratize access to AI resources for startups, researchers, and institutions.
• To facilitate greater participation, especially by smaller companies, the government has also eased eligibility norms for accessing these resources, offering GPU services at globally competitive subsidized rates.
• Sarvam’s selection to develop the first sovereign AI model exemplifies the mission’s objective of nurturing homegrown champions capable of competing on the global stage.

Challenges and Opportunities Ahead

• While the opportunity is historic, building a population-scale LLM is a complex challenge. 
• It demands seamless integration of vast datasets, engineering innovations to handle diverse languages and dialects, and fine-tuning for cultural and contextual understanding.
• Additionally, unlike some global LLMs that are open-sourced, Sarvam’s model is expected to be closely managed and fine-tuned specifically for Indian use cases. 
• This positions it as a secure and specialized alternative in an era where data privacy and localized solutions are paramount.

Future Prospects

• Sarvam’s success could unlock a universe of possibilities, from enabling AI-driven citizen services in rural areas to building enterprise-grade AI applications with localized intelligence. 
• It sets the foundation for India to not merely consume global AI solutions but to become a co-creator and leader in AI innovation.
• With investments from prominent venture capitalists like Lightspeed Venture Partners and Peak XV Partners, Sarvam is well-resourced to deliver on this ambitious national mission.

IndiaAI Mission FAQs

Q1. What is Sarvam AI’s project about?

Ans. Sarvam AI has been selected to build India’s first indigenous large language model under the IndiaAI Mission.

Q2. What are the main features of Sarvam’s AI model?

Ans. The model focuses on reasoning, supports voice tasks, and is fluent in multiple Indian languages.

Q3. How is the government supporting Sarvam AI?

Ans. Sarvam will get access to 4,000 GPUs and dedicated infrastructure to develop the model from scratch.

Q4. What are the different versions of the Sarvam model?

Ans. Sarvam is developing Sarvam-Large, Sarvam-Small, and Sarvam-Edge for different use cases.

Q5. What is the strategic importance of this project?

Ans. It enhances India’s AI sovereignty, promotes domestic innovation, and ensures secure, localized AI solutions.

Source : IE | TH

What’s in Today’s Article?

• India’s Maritime Boundary Dispute with Pakistan Latest News
• Background - Exclusive Economic Zone (EEZ) and ECS
• India’s Current Oceanic Claims
• Dispute with Pakistan and Sir Creek Issue
• India’s Strategic Response - Modified and Partial Claims
• Overlap with Other Countries - Oman, Myanmar, and Sri Lanka
• India’s Maritime Boundary Dispute with Pakistan FAQs

India’s Maritime Boundary Dispute with Pakistan Latest News

• India has expanded its Extended Continental Shelf (ECS) claim by nearly 10,000 sq km in the Central Arabian Sea.
• India has also modified earlier claims to avoid a long-standing maritime boundary dispute with Pakistan.
• Revised submissions were made in April 2025 to the United Nations' Commission on the Limits of the Continental Shelf (CLCS).

Background - Exclusive Economic Zone (EEZ) and ECS

• EEZ: Coastal countries have exclusive rights to mining, fishing, and resources up to 200 nautical miles from their baselines.
• ECS:
  • Countries can claim additional seabed areas if they can scientifically prove it is a natural extension of their landmass to the CLCS.
  • Rights include commercial mining of polymetallic nodules, oil reserves, and other valuable minerals.

India’s Current Oceanic Claims

• 12 nautical miles: Territorial sea.
• 200 nautical miles: EEZ.
• New extension: ~1.2 million sq km of ECS being added to ~2 million sq km EEZ.
• Combined seabed and sub-seabed area: It would become almost equal to India's land area of 3.274 million sq km.
• India's first submission to the CLCS: It was made in 2009 covering the Bay of Bengal, Indian Ocean, and Arabian Sea.

Dispute with Pakistan and Sir Creek Issue

• In 2021, Pakistan objected to India's claims, citing an overlap of 100 nautical miles near the disputed Sir Creek region.
  • Sir Creek is a disputed tidal estuary between Rann of Kutch in Gujarat and Sindh province (Pakistan).
• As a result, CLCS rejected India's full claim in the Arabian Sea in March 2023.

India’s Strategic Response - Modified and Partial Claims

• April 3, 2025: India submitted two partial claims to safeguard uncontested regions.
  • This approach avoids weakening India’s position in the valuable Central Arabian Sea region.
• Statement by M Ravichandran [Secretary, Ministry of Earth Sciences (MoES)]: “We have increased our claim by an additional 10,000 sq km based on new data.”
• Institutions of the MoES, such as the National Centre for Polar and Ocean Research (NCPOR, Goa), have played a key role in the technical aspects of determining India’s continental shelf.

Overlap with Other Countries - Oman, Myanmar, and Sri Lanka

• Oman: Overlaps exist but not under dispute due to a 2010 agreement.
• Myanmar and Sri Lanka:
  • India's claims in the Bay of Bengal and Indian Ocean (~300,000 sq km) face objections from Myanmar and Sri Lanka.
  • CLCS will begin new consultations later this year on these claims.

India’s Maritime Boundary Dispute with Pakistan FAQs

Q1. What is the significance of India's extended continental shelf (ECS) claim in the Central Arabian Sea?

Ans. The ECS claim enhances India's sovereign rights over seabed resources like minerals and hydrocarbons, almost matching India's land area and strengthening the Blue Economy.

Q2. Why did India modify its original ECS claim in the Arabian Sea recently?

Ans. India modified its claim to avoid overlap with the Pakistan-disputed Sir Creek region, ensuring uncontested areas in the Central Arabian Sea are secured.

Q3. What role does the Commission on the Limits of the Continental Shelf (CLCS) play in maritime boundary claims?

Ans. The CLCS scientifically evaluates and recommends states' extended continental shelf claims beyond their EEZ based on geological and geomorphological evidence.

Q4. Explain the Sir Creek dispute and its impact on India's maritime boundary claims.

Ans. The Sir Creek dispute between India and Pakistan over a tidal estuary led to Pakistan’s objection and the CLCS’s rejection of parts of India's original Arabian Sea claim.

Q5. Name the key institutions involved in supporting India's technical claims for the extended continental shelf.

Ans. The National Centre for Polar and Ocean Research (NCPOR) and the Ministry of Earth Sciences (MoES) are leading institutions involved in India's ECS submissions.

Source: TH

What’s in Today’s Article?

• UPI downtimes Latest News
• How UPI Works
• Why NPCI Faced Several Outages
• Why Banks Are Displeased with UPI
• UPI downtimes FAQ’s

UPI downtimes Latest News

• In March and April, the Unified Payments Interface (UPI) system faced three outages, disrupting payments on apps like GPay and PhonePe. 
• One major cause was individual banks overwhelming the National Payments Corporation of India’s (NPCI) systems by sending excessive transaction status check requests.

How UPI Works

• UPI is built on the Immediate Payment Service (IMPS) architecture. 
• For UPI transactions, banks must join the UPI system and allow users to link their bank accounts via a mobile number on a Payment Service Provider (PSP) app like PhonePe or GPay. 
• Almost all public and private banks are part of this network.

Interoperability

• UPI is designed to be interoperable, enabling users to access their bank accounts through any UPI-enabled app and even register on multiple apps simultaneously.

Role of NPCI

• While UPI appears to be a peer-to-peer system, nearly all transactions are routed through the National Payments Corporation of India (NPCI). 
• NPCI encrypts the user's PIN and forwards payment information to the payer’s bank, which then processes the transaction.

Single Point of Failure

• Since NPCI handles critical encryption and transaction routing, any downtime at NPCI results in complete disruption, as banks cannot independently process UPI transactions without it.

Why NPCI Faced Several Outages

• NPCI is a collective of banks, with public sector banks holding the majority stake, as required by the Payment and Settlement Systems Act, 2007. 
• Being bank-led, much of the system's implementation is left to individual banks, though NPCI oversees the UPI design and management.

Cause of Outages

• Recently, individual banks overwhelmed the NPCI systems by sending excessive “check transaction” requests to verify completed payments. 
• This stressed the system’s single point of failure and caused brief outages.

Introduction of UPI Lite

• To reduce downtime impact, NPCI introduced UPI Lite, allowing users to make small payments (up to ₹2,000) without entering a PIN. 
• However, even UPI Lite transactions still pass through NPCI servers for device verification, meaning NPCI remains a critical intermediary.

Persistent Single Point of Failure

• Despite lighter processes like UPI Lite, NPCI continues to be at the center of all UPI activity, maintaining its position as a single point of vulnerability.

Why Banks Are Displeased with UPI

• Lack of Significant Fees
  • Although UPI has revolutionized payments in India, banks have limited opportunities to collect fees from transactions, despite the associated costs. 
  • Banks incur around ₹0.80 per transaction, mainly due to SMS notification charges and the costs of maintaining payment records. 
  • However, they cannot charge a Merchant Discount Rate (MDR) for these services.
• Impact on Bank Incentives
  • Without the ability to charge MDR, banks have few incentives to maintain rigorous uptime standards, leading to more frequent outages compared to the National Payments Corporation of India (NPCI). 
  • These outages result in increased payment declines.
• Comparison with Card Networks
  • Commercial card networks like MasterCard and Visa experience fewer and shorter downtimes, thanks to better monitoring and enforceable service level agreements (SLAs).
• Government’s Incentive Programme
  • To address the issue, the Ministry of Electronics and Information Technology (MeitY) has introduced a “carrot and stick” approach. 
  • This includes an annual UPI incentive program that rewards banks based on their performance and penalizes those with poor uptime. 
  • The subsidy compensates banks for not being able to charge MDR. 
  • Banks with the lowest performance in uptime receive no compensation.

UPI downtimes FAQ’s

Q1. What caused UPI outages in March and April?

Ans. Banks overwhelmed NPCI systems with excessive transaction status check requests, causing service disruptions.

Q2. How does UPI work?

Ans. UPI connects banks to apps, allowing users to make transactions via linked phone numbers, routed through NPCI.

Q3. What is the role of NPCI in UPI?

Ans. NPCI encrypts transaction details and routes them between banks, ensuring smooth UPI transactions.

Q4. Why are banks displeased with UPI?

Ans. Banks can't charge MDR fees, despite incurring transaction costs, leading to reduced incentives for maintaining uptime.

Q5. What is UPI Lite?

Ans. UPI Lite allows small payments without a PIN, but still relies on NPCI for verification and routing.

Source: TH