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RBI, Government Push System-Wide AI Drive to Tackle Digital Frauds

Officials urge bank participation in RBI Innovation Hub pilots to build shared detection tools under stronger risk governance.

Overview

  • RBI deputy governor T Rabi Sankar called for a banking system–wide AI fraud-prevention platform and closer collaboration with the Reserve Bank Innovation Hub.
  • He urged banks to join pilots of MuleHunter.ai and a digital payments intelligence platform to accelerate fraud detection and post-incident recovery.
  • RBIH’s MuleHunter.ai is reported in use across about 20 commercial banks, with broader data sharing proposed through a trusted digital public infrastructure.
  • DFS secretary M Nagaraju warned that digital frauds and mule accounts are rising, pressing banks to strengthen risk frameworks, corporate governance and scalable cyber-ready IT systems.
  • FY25 data recorded 13,516 card and internet fraud cases totaling ₹520 crore, with private banks leading by case count and public banks by amount, while UPI fraud incidence was about 0.68 per lakh transactions.