Latest news with #MuleHunter
Hans India
4 days ago
- Business
- Hans India
Slowdown in credit growth not a cause of concern: RBI
Mumbai: Reserve Bank of India (RBI) doesn't have any concern on asset quality from unsecured loans perspective, including microfinance (MFI), Governor Sanjay Malhotra said on Wednesday. The system NPAs (non-performing assets) are also 'satisfactory', Malhotra told reporters, stressing that the proportion of dud assets is not increasing. Recalling that the NPAs in the unsecured segment like personal loans and credit cards, and also MFI, were indeed seen to be rising, Malhotra said the RBI acted by raising the risk weights which had the intended impact of slowing credit growth in the segments. 'We have seen a slowdown in credit growth there. From an overall perspective, this (NPAs in unsecured loans and MFI) is not a cause of concern for us,' he said. Malhotra also assured that MFIs, which serve the bottom of the pyramid and help deepen financial inclusion, will get all the attention as is required. Meanwhile, allaying fears of a decline in deposit rates leading to a shift of deposits to avenues beyond banks, Malhotra said there will not be any impact on banks' ability to lend, especially to the big-ticket corporate sector. He added that the shift of deposits to other financial instruments is also healthy in some aspects. 'Banks have sufficient funds in order to meet the needs of the economy, corporate, households, and the government sector. There is certainly a shift from banking to equity. On the whole, it is a healthy trend for the economy. I think we should not be unduly concerned about that,' he said. Meanwhile, Malhotra also said that instructions have been issued to banks to avoid misselling of any products or services, but accepted that there is a scope to do more on the subject for people's benefit. The RBI Governor also said that the MuleHunter to help lenders identify Mule accounts used in frauds platform has been adopted by 15 banks across the country now.
Mint
4 days ago
- Business
- Mint
No cause of concern on unsecured lending, MFI asset quality: Malhotra
Mumbai, Aug 6 (PTI) The Reserve Bank does not have any concern on asset quality from unsecured loans perspective, including microfinance (MFI), Governor Sanjay Malhotra said on Wednesday. The system NPAs (non-performing assets) are also "satisfactory", Malhotra told reporters, stressing that the proportion of dud assets is not increasing. Recalling that the NPAs in the unsecured segment like personal loans and credit cards, and also MFI, were indeed seen to be rising, Malhotra said the RBI acted by raising the risk weights which had the intended impact of slowing credit growth in the segments. "We have seen a slowdown in credit growth there. From an overall perspective, this (NPAs in unsecured loans and MFI) is not a cause of concern for us," he said. Malhotra also assured that MFIs, which serve the bottom of the pyramid and help deepen financial inclusion, will get all the attention as is required. Meanwhile, allaying fears of a decline in deposit rates leading to a shift of deposits to avenues beyond banks, Malhotra said there will not be any impact on banks' ability to lend, especially to the big-ticket corporate sector. He added that the shift of deposits to other financial instruments is also healthy in some aspects. "Banks have sufficient funds in order to meet the needs of the economy, corporate, households, and the government sector. There is certainly a shift from banking to equity. On the whole, it is a healthy trend for the economy .. I think we should not be unduly concerned about that," he said. Meanwhile, Malhotra also said that instructions have been issued to banks to avoid misselling of any products or services, but accepted that there is a scope to do more on the subject for people's benefit. The RBI Governor also said that the MuleHunter to help lenders identify Mule accounts used in frauds platform has been adopted by 15 banks across the country now. The Governor refused to answer queries related to the fraud-hit IndusInd Bank, which has announced a new managing director and chief executive a few days back.
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Business Standard
5 days ago
- Business
- Business Standard
No asset quality worries in MFIs or unsecured loans, says RBI Governor
The Reserve Bank does not have any concern on asset quality from unsecured loans perspective, including microfinance (MFI), Governor Sanjay Malhotra said on Wednesday. The system NPAs (non-performing assets) are also "satisfactory", Malhotra told reporters, stressing that the proportion of dud assets is not increasing. Recalling that the NPAs in the unsecured segment like personal loans and credit cards, and also MFI, were indeed seen to be rising, Malhotra said the RBI acted by raising the risk weights which had the intended impact of slowing credit growth in the segments. "We have seen a slowdown in credit growth there. From an overall perspective, this (NPAs in unsecured loans and MFI) is not a cause of concern for us," he said. Malhotra also assured that MFIs, which serve the bottom of the pyramid and help deepen financial inclusion, will get all the attention as is required. Meanwhile, allaying fears of a decline in deposit rates leading to a shift of deposits to avenues beyond banks, Malhotra said there will not be any impact on banks' ability to lend, especially to the big-ticket corporate sector. He added that the shift of deposits to other financial instruments is also healthy in some aspects. "Banks have sufficient funds in order to meet the needs of the economy, corporate, households, and the government sector. There is certainly a shift from banking to equity. On the whole, it is a healthy trend for the economy .. I think we should not be unduly concerned about that," he said. Meanwhile, Malhotra also said that instructions have been issued to banks to avoid misselling of any products or services, but accepted that there is a scope to do more on the subject for people's benefit. The RBI Governor also said that the MuleHunter to help lenders identify Mule accounts used in frauds platform has been adopted by 15 banks across the country now. The Governor refused to answer queries related to the fraud-hit IndusInd Bank, which has announced a new managing director and chief executive a few days back.
News18
5 days ago
- Business
- News18
No cause of concern on unsecured lending, MFI asset quality: Malhotra
Last Updated: Mumbai, Aug 6 (PTI) The Reserve Bank does not have any concern on asset quality from unsecured loans perspective, including microfinance (MFI), Governor Sanjay Malhotra said on Wednesday. The system NPAs (non-performing assets) are also 'satisfactory", Malhotra told reporters, stressing that the proportion of dud assets is not increasing. Recalling that the NPAs in the unsecured segment like personal loans and credit cards, and also MFI, were indeed seen to be rising, Malhotra said the RBI acted by raising the risk weights which had the intended impact of slowing credit growth in the segments. 'We have seen a slowdown in credit growth there. From an overall perspective, this (NPAs in unsecured loans and MFI) is not a cause of concern for us," he said. Malhotra also assured that MFIs, which serve the bottom of the pyramid and help deepen financial inclusion, will get all the attention as is required. Meanwhile, allaying fears of a decline in deposit rates leading to a shift of deposits to avenues beyond banks, Malhotra said there will not be any impact on banks' ability to lend, especially to the big-ticket corporate sector. He added that the shift of deposits to other financial instruments is also healthy in some aspects. 'Banks have sufficient funds in order to meet the needs of the economy, corporate, households, and the government sector. There is certainly a shift from banking to equity. On the whole, it is a healthy trend for the economy .. I think we should not be unduly concerned about that," he said. Meanwhile, Malhotra also said that instructions have been issued to banks to avoid misselling of any products or services, but accepted that there is a scope to do more on the subject for people's benefit. The RBI Governor also said that the MuleHunter to help lenders identify Mule accounts used in frauds platform has been adopted by 15 banks across the country now. The Governor refused to answer queries related to the fraud-hit IndusInd Bank, which has announced a new managing director and chief executive a few days back. PTI AA MR view comments First Published: August 06, 2025, 20:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
01-08-2025
- Business
- Business Standard
15 more banks to adopt RBI's MuleHunter fraud detection tool by October
At least 15 more banks are set to implement the RBI-developed MuleHunter platform over the next two months to intensify efforts to tackle fraud by identifying accounts used for fraudulent transactions, a senior official said on Friday. Five lenders, including Canara Bank, Punjab National Bank, Bank of India, Bank of Baroda and AU Small Finance Bank, have already implemented the platform developed by the RBI Innovation Hub, a fully-owned subsidiary of the central bank, while Federal Bank is set to adopt it over the next few days, the official added. Mule accounts, or accounts created by fraudsters to receive, transfer or launder illicit funds collected from unsuspecting victims, have been a big challenge for the banking system because such accounts, which are generally opened using fraudulently obtained credentials, are used for transferring proceeds of financial frauds. Usually, there are multiple layers of such accounts from where funds are transferred within a short time to ensure that no clawing back of the funds to the rightful owner is possible. MuleHunter is based on artificial intelligence and machine learning-based algorithms, and being given free to banks for now, Suvendu Pati, a chief general manager at RBI, said at an ICAI event here. "We have now implemented across 6 banks. And we are on the have already got in touch...(to add) another 20 banks or at least 15 banks in the 1.5 or 2 months' time," he said. MuleHunter complements the banks' systems to tackle such activities, Pati said, claiming that the RBI's platform is more efficient at detecting such mule accounts. As against 80 per cent false positives seen in other platforms, MuleHunter has been seen to throw up 90 per cent positive alerts, making it easier for the human behind the software to start acting, he pointed out. Stating that initial results of the implementation are encouraging, Pati said adding more banks will make the system much more efficient because it will accordingly be able to 'learn' and identify patterns deployed. "The model is still learning, these are early days," he said, adding that it is used for both savings bank and current accounts. Banks need to devote resources in terms of infrastructure and data scientists while adopting the model. The platform has identified 90 patterns used by fraudsters operating the mule accounts, including ascertaining that the highest number of such transactions happens between 11 PM and 1 AM because a bulk of the call centres are shut for a variety of reasons, including daily maintenance, leaving no way for the victim to correct the situation. Pati conceded that as the system is developing and learning, the bad actors will have a field day in the short term, but exuded confidence that over the medium-to-long term, law enforcement will be better. He also said that the report of a committee on AI set up by the RBI will be coming out soon. With quantum computing on the horizon, we also need to be cognizant of the threats posed by the newer technologies and devices, and our response in advance, the senior RBI official said.
