In his Monetary Policy Statement on December 6, 2024, RBI Governor Shaktikanta Das announced the launch of Mulehunter.AI, a groundbreaking initiative aimed at tackling the rising menace of digital frauds and mule accounts in the banking sector. This AI-driven tool will enable banks to address issues related to fraudulent accounts more efficiently and reduce risks in the digital financial ecosystem.
Key Highlights:
- Mulehunter.AI:
- Developed to combat the growing issue of mule accounts, which are often used in fraudulent transactions.
- This advanced AI solution will allow banks to detect and deal with such accounts expeditiously, ensuring a safer digital banking environment.
- AI Governance Framework:
- A committee of experts from diverse fields will be established to recommend a responsible and ethical framework for AI enablement in the financial sector.
- The framework will focus on ensuring that AI technologies are deployed securely, ethically, and responsibly in the banking industry.
- Technological Transformation in Finance:
- Das highlighted the rapid transformation of the financial sector, driven by technologies like AI, tokenization, and cloud computing.
- He emphasized the importance of embracing innovation while maintaining robust safeguards to protect customers and institutions alike.
Prudent Monetary Policy Stance
The Monetary Policy Committee (MPC) has decided to maintain a prudent and cautious approach in this meeting, leaving the repo rate unchanged at 6.5%. Das stated that this decision provides the central bank with better visibility on growth and inflation trends before undertaking further actions.
Addressing Growth and Inflation
- Growth Outlook: The MPC acknowledges signs of recovery, with the economic slowdown bottoming out in Q2 FY25, but has opted to remain vigilant amid global uncertainties and geopolitical tensions.
- Inflation Control: Despite easing pressures, inflation remains a concern, warranting a balanced approach between supporting economic recovery and maintaining price stability.
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