The Reserve Bank of India (RBI) is preparing to take a major step to stop online fraud.
According to sources, RBI will soon make AI (Artificial Intelligence)-based bank account verification mandatory for all banks.
This system is being introduced mainly to identify mule accounts, which fraudsters use to transfer illegally earned money from one account to another.
Wider Use of AI Verification
AI-based verification will not only be applied in day-to-day banking operations but also in issuing new bank licenses and renewing old licenses. RBI is expected to release detailed guidelines soon.
A pilot project has already been tested in one bank, where AI helped identify nearly 13 lakh mule accounts.
Officials confirmed that the test showed AI is highly effective in spotting suspicious activities and preventing misuse of the financial system.
Awareness Campaign for the Public
Mule accounts are usually opened with fake identities or unknown names and later misused for fraud.
To prevent this, the government will also run a nationwide awareness campaign, explaining how such accounts work and how fraudsters trap people.
Stronger Banking Security
Officials believe this initiative will significantly reduce financial crimes and make the banking system more secure across the country.
