RBI proposes temporary debit holds on suspected money mule accounts
The Reserve Bank of India (RBI) has proposed new rules to help banks identify suspected money mule accounts and transactions and place temporary debit holds on them after a Supreme Court push earlier this year.
If your account gets flagged, banks can temporarily block transactions while they check things out.
These changes kick in from April 1, 2027.
Flagged accounts 20-day reply, 60-day limit
If your account is put on hold for suspicious activity, you'll have 20 days to explain what's going on.
The bank then reviews your response within 10 days, and if things are still unclear, they might get law enforcement involved.
If no one steps in after a month, the hold is lifted automatically.
RBI says these holds won't drag on for more than 60 days unless a law enforcement agency or competent authority directs otherwise.
You can send feedback on these draft rules until October 2, 2026.