Implement mule hunter tools across banks to identify suspicious accounts: Hyderabad CP Sajjanar to RBI

Hyderabad: City Police Commissioner VC Sajjanar on Friday called for a systemic overhaul to counter the fast-growing menace of cybercrime and financial fraud.

He also urged the banking regulator to deploy sharper technology and tighter oversight to protect citizens’ savings.

Meeting with RBI Leadership

During a courtesy meeting with the Reserve Bank of India (RBI) Sanjay Malhotra and deputy governor J. Swaminathan at the RBI’s Hyderabad Regional Office, Sajjanar underlined the central bank’s critical role in safeguarding the country’s digital payments ecosystem and preventing misuse of banking channels by cybercriminals.

Mule accounts power cyber frauds

Describing mule accounts as the “oxygen” that sustains cybercrime, the Police Commissioner explained how fraudsters exploit vulnerable sections, particularly students and daily wage labourers, by offering commissions ranging from Rs 2,000 to Rs 5,000 for opening bank accounts.

“These accounts are used to swiftly route stolen money. Within minutes, funds are layered and moved across multiple accounts, making detection and recovery extremely difficult,” he said.

Mule hunter tools, central database proposed

To break this chain, Sajjanar urged RBI to ensure the implementation of mule hunter tools across banks to proactively identify suspicious accounts. He also proposed the creation of a centralised national database to track and flag mule accounts, enabling real-time alerts and coordinated action among banks and enforcement agencies.

Stricter KYC, better due diligence

The Commissioner stressed the need for rigorous enforcement of Know Your Customer (KYC) norms and enhanced due diligence at the account-opening stage. He said lapses in verification were being exploited by organised cybercrime networks operating across states and even international borders.

Faster sharing of evidence sought

Pointing to procedural bottlenecks in investigations, Sajjanar called for immediate sharing of technical evidence by banks, including standardised bank statements with complete transaction details. He also emphasised closer coordination between banks and central agencies to speed up probes and improve conviction rates.

RBI assures further measures

Responding to the concerns, RBI governor said the central bank and commercial banks had already initiated multiple steps to reduce digital fraud.

He assured that the issues raised by the Hyderabad Police would be examined and that further measures would be taken to strengthen the safety and resilience of the payment ecosystem.

Additional Commissioner of Police (Crimes) M. Srinivasulu, DCP (CCS) Shweta, and DCP (Cyber Crimes) Aravind Babu accompanied the Commissioner during the meeting.