Dec 06, 2024 04:43 PM IST
The RBI Governor Shaktikanta Das mentioned a pilot programme with two massive public sector banks has yielded “encouraging” outcomes.
The Reserve Financial institution of India (RBI) on Friday requested banks to collaborate with its modern synthetic intelligence and machine studying (AI/ML) based mostly mannequin known as MuleHunter.AI to take care of rising menace of mule accounts, that are used to execute digital frauds.
The Reserve Financial institution on Friday raised the inflation projection for present fiscal yr to 4.8 per cent from 4.5 per cent with Governor Shaktikanta Das saying lingering meals worth pressures are prone to hold headline inflation elevated within the December quarter.(PTI)
“Use of money mule accounts is a common method adopted by fraudsters to channel proceeds of frauds,” mentioned RBI Governor Shaktikanta Das whereas unveiling the December 2024 financial coverage.
Das mentioned the RBI is at present operating a hackathon on the theme “Zero Financial Frauds” which goals to encourage improvement of modern options to comprise the menace of mule accounts.
A mule account is a checking account utilized by criminals to launder illicit funds, usually arrange by unsuspecting people lured by guarantees of straightforward cash or coerced into participation. The switch of funds by these extremely interconnected accounts makes it tough to hint and get well the funds.
The RBI claims the brand new mannequin is healthier suited than a rule-based system to establish suspected mule accounts.(rbihub.in/mule-hunter-ai)
As a part of this hackathon, the cental financial institution has piloted an AI/ML based mostly mannequin known as MuleHunter.AI, developed by its subsidiary the Reserve Financial institution Innovation Hub (RBIH).
This new modern mannequin permits banks to detect mule financial institution accounts in an environment friendly method. The RBI mentioned a pilot programme with two massive public sector banks has yielded “encouraging” outcomes.
“Banks are encouraged to collaborate with RBIH to further develop the MuleHunter.AI initiative to deal with the issue of mule bank accounts being used for committing financial frauds,” Das added.
He mentioned that the monetary sector is seeing paradigm shifts with the introduction of applied sciences like Synthetic Intelligence (AI)/ Machine Studying (ML), tokenisation and cloud computing that allow establishments to deal with huge volumes of knowledge, automate advanced processes, improve decision-making, and usher in unprecedented efficiencies.
Thus, Das introduced the formation of a committee to develop a Framework for Accountable and Moral Enablement of AI (FREE-AI) within the monetary sector. The committee will comprise consultants with numerous expertise and shall advocate “a robust, comprehensive, and adaptable AI framework for the financial sector”.
The central financial institution governor additionally mentioned that the RBI has been taking numerous measures in coordination with banks and different stakeholders to stop the menace of digital frauds. These embody RBI tips for regulated entities to strengthen cybersecurity, cyber fraud prevention and transaction monitoring.
(With PTI inputs)
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