The Department of financial services yesterday held a high-level meeting with the banks and directed them to deploy modern technologies, like artificial intelligence (AI) and machine learning (ML), to curb the menace of bank frauds with customers.

"Proactive measures are required to be taken to protect citizen’s hard-earned money. Protecting citizens’ wealth is our shared responsibility," said M. Nagaraju, secretary, Department of Financial Services.

The meeting at the DFS, aimed at addressing the growing challenges due to digital financial frauds, especially mule accounts, was attended by representatives from the RBI, public sector banks, private banks, and payment banks.

In the meeting, banks were urged to adopt best practices, leverage cutting-edge tools, and foster inter-bank collaboration to effectively address mule accounts.

"Banks were directed to adopt advanced technologies, including AI/ML solutions, for the real-time detection of mule accounts, train & upskill bank staff on fraud detection & prevention, greater advocacy & awareness for common citizen for not to fall prey to the fraudsters," the Ministry of Finance said on the microblogging site X.

"Banks were also encouraged to explore and implement MuleHunter.AI, an AI/ML-driven model developed by the RBI, to strengthen the detection and monitoring of mule accounts," the ministry post said.

"Secretary, DFS, emphasised the need for regulators and banks to work collectively in curbing digital financial frauds. The sharing of good practices across the banking sector was highlighted to ensure a unified and effective response," it added.