Overview
- Malhotra urged banks and other regulated entities to move beyond tick-box compliance and work with the RBI as partners to safeguard the financial system.
- He called for industry-wide development of shared analytics and AI/ML tools to pre-emptively flag mule accounts and suspicious flows, with RBIH’s MuleHunter cited as a model.
- The RBI plans to shift supervision toward off-site, near real-time monitoring using SupTech and AI, while keeping judgment and accountability firmly with supervisors.
- Enforcement was framed as corrective and a backstop, with June–November 2025 actions covering 134 entities and penalties totaling Rs 6.99 crore.
- Recent RBI data show reported fraud cases fell to 5,092 from 18,386 year-on-year, even as losses rose to ₹21,515 crore from ₹16,569 crore for April–September, underscoring risks from opaque pricing, weak disclosures and harsh recoveries.