RBI Governor Wants The Banks To Take Action Against The Mule Accounts

Mule accounts are often a way through which the scams in the banking sector increase. RBI governor is going to make efforts to decrease the mule accounts. It is a type of account that belongs to one person but is used by another person. Reserve Bank Of India is becoming serious about the increasing cases of digital fraud. The governor conducts a meeting under which all the public sector banks and some private banks from Mumbai will gather. Let us look at the steps that the central bank took upon the mule accounts.

RBI Governor Will Take Strict Action Against The Mule Account

RBI Governor will take strict action against the mule accounts. These are the accounts whose account holders don’t use it. While other entities use it. These accounts are prone to digital fraud. We have seen several accounts that hackers hack to loot money from that account. RBI wants the banks and consumers to be more conscious of these increasing scams.

The meeting discusses the scope of increasing cybersecurity controls. Banking companies need to increase cybersecurity measures. Apart from the digital frauds, several other matters came into focus in the meeting. Matters like ALM-related issues, Liquidity risk management, trends in unsecured retail lending, and several third-party risks were the main matters. RBI Governor also highlights the importance of the customer’s awareness. If the consumers are aware, they will be able to utilise their knowledge to prevent themselves from these potential frauds.

Many times fraud calls ask for the OTPs which leads to deductions in the account. The gap between the credit and deposit growth is also increasing. The discussion is going on to create more awareness. The banks will also use different methods to reduce these risks. The foremost action will be on the mule account. As the governance standards will increase, the shift towards safer banking practices will take place.

The mule account is not considered a good approach as it is a violation of the banking rules. RBI governor is having a positive approach towards these actions. Shaktikanta Das kept this matter ahead of the public banks recently. Soon, there will be more efforts to stop the mule accounts. RBI is positive that these measures will surely help the banking system become more safe from fraud. Digital safety is a need of every individual. Thus, everyone must get this right to transact safely. Stay tuned for more information on our website.