The Innovation Hub of the Reserve Bank of India (RBIH) has made a significant move to combat financial frauds. The bank has introduced RBIH Mulehunter.Ai, an AI-driven tool designed to reduce financial fraud. The RBI has begun discussions with various banks to encourage the use of its AI-driven Mule Hunter AI tool. Sources indicate that RBIH CEO Rajesh Bansal stated that the tool has been embraced by two significant public sector banks, and talks are currently ongoing with ten additional banks.
The Reserve Bank’s Mulehunter.Ai is being characterized as a useful measure in the fight against financial fraud. It will assist in accelerating the detection of fraudulent accounts and countering financial fraud. Let’s discover what Mulehunter.Ai is and how it operates.
A research project has been carried out on 19 unique patterns alongside banks to create Mulehunter.Ai. Preliminary findings show that this tool greatly enhances both precision and effectiveness. The results from the tests are promising. It is three times as precise as manual systems and decreases time usage by tenfold.
Addressing the growing challenges of financial fraud
RBIH states that the scale and complexity of financial fraud are continuously increasing, where transactions often involve large sums of money. Multiple channels are being used for fraud, and it is no longer limited to small amounts, but can go up to ₹1 crore.
Bansal also mentioned that the most effective way to curb fraud is to see where the money ultimately goes.
Warning from the RBI Governor
Recently in October, RBI Governor Shaktikanta Das warned about the potential dangers of AI in the financial sector. He stated that “even though AI is revolutionizing the financial sector, excessive reliance on it could pose risks to financial stability.”
