RBI Urges Banks to Tackle Mule Accounts

• 09 Dec 2024

On 7th Dec 2024, the RBI called on banks to adopt advanced practices, tools, and collaboration to combat the growing issue of mule accounts effectively.

• Banks have been advised to incorporate cutting-edge technologies, including AI and machine learning, for real-time detection of mule accounts and fraudulent activities.
• The finance ministry emphasized the importance of training and upskilling bank staff to improve fraud detection and prevention capabilities.
• Awareness campaigns for the general public were recommended to prevent them from falling victim to fraudsters and becoming unwitting participants in financial scams.
• Banks were encouraged to utilize RBI's MuleHunter.AI, an AI/ML-driven model, to enhance monitoring and detection of suspicious accounts.
• The Financial Services Secretary stressed the necessity of collaboration between banks and regulators to collectively curb digital financial fraud.