RBI’s MuleHunter AI Fraud Detection Tool Expands to Over 15 Additional Banks for Upcoming Rollout

At least 15 banks are adopting the MuleHunter AI tool over the next two months to enhance fraud detection, as announced by RBI’s Chief General Manager Suvendu Pati. Banks already leveraging MuleHunter include Canara Bank, Punjab National Bank, Bank of India, Bank of Baroda, and AU Small Finance Bank. Federal Bank is set to go live soon, furthering its implementation of this advanced AI/ML tool. Canara Bank reportedly achieved a 95% accuracy rate in identifying mule accounts using MuleHunter. This AI model, developed by the RBI Innovation Hub, addresses concerns around mule accounts—accounts created by one individual but controlled by another, often used in money laundering and tax evasion. Such accounts violate the Prevention of Money Laundering Act (PMLA) and other regulatory frameworks. The RBI emphasizes the importance of evolving fraud risk management systems to prevent such illegal activities effectively. For more business news and updates, follow Moneycontrol.

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