Hyderabad police chief seeks RBI support to curb mule accounts fuelling cyber fraud

Hyderabad City Police Commissioner V.C. Sajjanar on Friday (December 19, 2025) called for a paradigm shift in tackling cybercrime and financial fraud, urging the Reserve Bank of India to play a more proactive role in choking the flow of money that sustains digital scams.

During a courtesy meeting with RBI Governor and Deputy Governor Swaminathan at the RBI’s Hyderabad regional office, Sajjanar described “mule accounts” as the oxygen that keeps cybercriminal networks alive. He pressed for the implementation of a mule hunter tool across banks to identify and curb the misuse of such accounts.

The Commissioner explained that fraudsters routinely lure students and daily wage labourers with commissions ranging from ₹2,000 to ₹5,000 to open bank accounts, which are then used to divert money siphoned from victims. He noted that stolen funds are often routed through these mule accounts within minutes, making recovery difficult.

To address this, Sajjanar proposed the creation of a dedicated centralised database to identify and track mule accounts across banks. He also called for stricter enforcement of know-your-customer (KYC) norms and improved due diligence by banks at the account opening stage.

Highlighting delays that hamper investigations, he suggested faster sharing of technical evidence by banks, including standardised bank account statements carrying all relevant details, and closer coordination with central agencies.

Responding to the concerns, the RBI Governor said both the central bank and commercial banks had already taken several steps to reduce digital fraud and would continue to strengthen the payment ecosystem. He assured the police of a positive approach and said suitable measures would be considered to address the issues raised.

Additional Commissioner of Police (Crimes) M. Srinivasulu, DCP (Central Crime Station) Shweta and DCP (Cyber Crimes) Aravind Babu were part of the police delegation.