Suresh Raina moved up three places to No 13 after an impressive series in Australia, while opener Rohit Sharma rose four to No 16.
Virat Kohli was rewarded for his stupendous performance in India's clean sweep over Australia in the just-concluded T20 Internationals with the top ranking in the shortest format of the game.
The Indian batting ace replaced Aaron Finch as the No 1 batsman in the International Cricket Council's rankings.
According to the latest list, Kohli, who had scores of 90 not out, 59 not out and 50 in the three-match series, gained 47 ratings points to move ahead of Finch with 892 ranking points to his credit.
Finch gained 14 points thanks to scores of 44 and 74 in Adelaide and Melbourne, but a hamstring injury in Game 2 ruled him out of the final match of the series at the SCG on Sunday.
India's Suresh Raina moved up three places to 13th after an impressive series, while opener Rohit Sharma also moved up four places to 16th.
David Warner, who scored 17 in the opening match before heading to New Zealand for the One-day international series against the Black Caps, dropped six spots to 18th.
West Indies spinner Sunil Narine, who is currently banned by the ICC because of an illegal bowling action, retained the top spot in the bowling rankings ahead of fellow-Windies slow bowler Samuel Badree.
The latest rankings also confirmed India's ascension to No 1 in the world, while Australia plummeted to eighth following the 3-0 series defeat.
The new rankings come as all nations fine-tune their preparation for the World T20 in India in March and April, the sixth version of the Twenty20 international showpiece event.