
The Reserve Bank of India (RBI) has asked banks to team up with MuleHunter.AI. This AI/ML-based model helps identify mule accounts linked to financial fraud.
Mule accounts are bank accounts used to move illegal money. These accounts are often opened by people who are unaware or forced to take part. The complex network of such accounts makes it hard to track and recover the money.

RBI Governor Shaktikanta Das spoke about this issue while announcing the December 2024 monetary policy. He said fraudsters often use mule accounts to transfer stolen funds. To stop this, the RBI has launched a hackathon called Zero Financial Frauds. It encourages solutions to reduce the misuse of mule accounts.

MuleHunter.AI was developed by the Reserve Bank Innovation Hub (RBIH), a part of the RBI. A pilot test with two large public sector banks showed good results. The RBI now wants more banks to join this initiative and improve the system.
Additionally, the RBI has introduced several measures to fight digital fraud. These include guidelines for banks to improve cybersecurity, detect cyber fraud, and monitor transactions effectively.
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Governor Das also announced a new committee to create a Framework for Responsible and Ethical Enablement of AI (FREE-AI) in the financial sector. He said new technologies like AI, machine learning, tokenisation, and cloud computing are changing the financial world. These tools can handle large amounts of data, automate tasks, and improve decisions.
However, these technologies also come with risks. These include bias in algorithms, unclear decision-making, and data privacy issues. The committee will address these risks and suggest a strong AI framework. Experts from different fields will be part of the group. Details about the committee will be shared soon.