Union ministry of finance directs banks to adopt RBI’s artificial intelligence tool to curb mule accounts

Hyderabad: At a meeting on Operation Octopus, the Union ministry of finance on Thursday directed banks to adopt the MuleHunter.AI tool, developed by the Reserve Bank of India (RBI), at the earliest to identify mule accounts.The department of financial services (DFS), in a post on X, said: "Secretary, DFS instructed banks to adopt the MuleHunter.AI tool developed by RBI at the earliest for timely identification and prevention of mule accounts involved in financial cyber frauds. #OperationOctopus." The meeting was convened by DFS secretary M Nagaraju.The high-level meeting, chaired by Nagaraju, was attended by officials from the Central Bureau of Investigation (CBI), Reserve Bank of India, I4C, senior bank officials, and Hyderabad police commissioner VC Sajjanar."The meeting emphasised closer collaboration among law enforcement agencies and banks, real-time intelligence sharing, and faster response mechanisms to detect and prevent digital financial frauds under Operation Octopus," police said.Sajjanar made a presentation on how mule accounts were opened by the accused, including bank officials, by bypassing rules. More than 10 days ago, 32 bank officials were arrested across nine states for their alleged role in opening mule accounts without proper verification.In Telangana, enforcement agencies, including the TG Cyber Security Bureau (TGCSB) and Cyberabad police, have identified mule accounts used by cybercriminals to divert victims' money.The meeting also reviewed digital arrest cases. In Telangana, victims lost ₹75 crore in 1,113 such cases in 2025, compared to ₹176 crore lost in 3,037 cases in 2024.