Indian parliamentary committee urges penalties for banks allowing mule accounts
A parliamentary committee is pushing for penalties on banks that let "mule accounts" slip through: these are used to move illegal money around.
They say banks aren't doing enough with know-your-customer checks and want the government and the Reserve Bank of India to set up strict rules for careless branches.
The goal? Make banking safer and more trustworthy.
Committee recommends tiered UPI revenue model
The committee also pointed out that UPI, India's go-to payment system, is growing fast but doesn't have enough funding: government support covers just a tiny slice of what's needed.
Delays in charging fees for big transactions make it harder to invest in fraud protection.
Parliament has passed amendments to the Payment and Settlement Systems (PSS) Act, 2007, which will allow the Centre to permit banks and other service providers to levy charges on transactions made through UPI and other notified digital payment modes.
The committee recommends a self-reliant, tiered revenue model to keep the system sustainable long-term.