Particle.news
Download on the App Store

RBI Recasts Supervision for the Digital Age With Push for Shared Fraud Analytics

The central bank sets a SupTech-first shift toward near real-time oversight to curb mule accounts, prioritizing fair outcomes for customers.

Overview

  • Governor Sanjay Malhotra said the regulator and regulated entities are partners tasked with safeguarding long‑term growth, stability, integrity and credibility of the financial system.
  • He urged banks and other institutions to collaborate on shared analytics and tools to detect mule accounts and suspicious transactions early and pre‑emptively.
  • RBI plans to move supervision off‑site and as near real‑time as possible by deploying SupTech and AI tools while retaining human judgment and accountability.
  • Malhotra pressed firms to imbibe the spirit of regulation rather than rely on tick‑box compliance to ensure digital innovation delivers fair outcomes for consumers.
  • He described enforcement as a backstop used as a last resort, with supervision aimed at fostering self‑correction and clarifying acceptable standards of conduct.