RBI steps up to fight banking fraud and mis-selling
The Reserve Bank of India (RBI) is tightening the rules for banks and financial companies to prevent dodgy sales tactics and protect customers from fraud.
This move comes after their latest report showed that while there are fewer fraud cases, the money lost in these scams has actually gone up.
Fewer scams, but bigger losses
The number of reported banking frauds dropped, but thanks to a Supreme Court order, 122 old cases worth a massive ₹18,336 crore got added back in—pushing total losses higher.
Most scam incidents happened online or with cards (about 67%), while public sector banks took the biggest hit in terms of money lost.
RBI's new tech tools and rules
To keep up with smarter scammers, RBI has rolled out AI-powered tools like MuleHunter.ai in 23 banks to spot fake accounts.
There's also a new Digital Payments Intelligence Platform for catching risky transactions.
Stricter controls on calls/SMS from banks will be implemented along with better coordination with telecom authorities to flag suspicious activity—making digital banking safer for everyone.