Sankar added that the RBI, after talking to banks and the Reserve Bank Innovation Hub, is working on developing MuleHunter system better which identifies mule accounts
RBI Deputy Governor T Rabi Sankar (file photo) | Photo Credit: ANI
Banks globally compensate a customer immediately if they face monetary loss via frauds and Indian banks could also consider moving in that direction, Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar said at an event in Mumbai today.
“We have to put our minds together…in many countries, jurisdictions, when you report a fraud, the first thing the bank does is pays you. It searches the fraud separately. Can we try and go for such a system? Maybe with certain thresholds. Can we think of insurance for frauds?” he said.
Technology itself will enable stakeholders to build systems that follow up effectively in this regard, he said. Sankar added that the RBI, after talking to banks and the Reserve Bank Innovation Hub, is working on developing MuleHunter system better which identifies mule accounts. However, there is still a long way to go in terms of ensuring that should a fraud happen, can we still protect or improve recovery of the fraud amount.
Published on January 9, 2026
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