RBI revising rules on unauthorised e-banking transactions; MuleHunter.AI live in 26 banks
The Finance Ministry told Parliament on 24 March 2026 that RBI has proposed revised instructions on unauthorised electronic banking transactions, including compensation for small-value frauds, and that its MuleHunter.AI mule-account detection tool is live in 26 banks.
Summary
The Ministry of Finance said on 24 March 2026 that the Reserve Bank of India, whose instructions on limiting customer liability in unauthorised electronic banking transactions date from 2017, has issued revised instructions for public consultation on 6 March 2026, including a compensation mechanism for small-value fraudulent electronic transactions. The Indian Digital Payment Intelligence Corporation (IDPIC) was incorporated on 16 October 2025 as a Section 8 company under the Companies Act, 2013, to detect, prevent and analyse digital payment fraud in real time using AI, machine learning and big data. RBI's AI/ML-based MuleHunter.AI, which detects mule accounts used to divert and layer cyber-fraud money, is live in 26 banks and being scaled up.
Key facts
- Existing rules
- RBI customer-liability instructions of 2017
- Revised draft
- Issued for consultation on 6 March 2026; compensation for small-value frauds
- IDPIC
- Incorporated 16 October 2025 as a Section 8 company; real-time digital payment fraud analytics
- MuleHunter.AI
- RBI AI/ML tool for mule accounts – live in 26 banks
- Source
- Ministry of Finance, 24 March 2026
Practice MCQs 2 questions
'MuleHunter.AI', mentioned by the Finance Ministry in March 2026, is used to:
Show answer
Correct answer: D — Detect mule accounts used in cyber frauds
MuleHunter.AI is RBI's AI/ML-based solution to detect mule accounts used to divert and layer money from cyber frauds; it is live in 26 banks.
Consider the following about the Indian Digital Payment Intelligence Corporation (IDPIC): 1. It was incorporated as a Section 8 company under the Companies Act, 2013. 2. Its mandate is real-time detection and prevention of fraud in digital payments. Which of the above is/are correct?
Show answer
Correct answer: C — Both 1 and 2
IDPIC was incorporated on 16 October 2025 as a Section 8 company, with the mandate to detect, prevent and analyse digital payment fraud in real time using AI, ML and big data.