Kerala emerging as a hotspot for mule accounts, says senior SLBC official

Fraudsters are increasingly targeting school and college-going students to open mule accounts, which are then misused to launder money and commit cyber fraud, the State-Level Bankers’ Committee (SLBC) has warned.

Addressing a press conference here on Wednesday, SLBC (Kerala and Lakshadweep) convener Pradeep K. S. said Kerala is becoming a hotspot for such activities. Holders of mule accounts risk serious legal consequences, including imprisonment, a permanent criminal record, and blacklisting by financial institutions, Mr. Pradeep warned.

He urged the public to remain vigilant against digital fraud and online scams. Awareness programmes were being conducted in educational institutions to alert youth against these dangers as part of a nationwide, three-month campaign of the Department of Financial Services, Union Finance Ministry aimed at achieving complete financial inclusion across all grama panchayats.

On banking services, Mr. Pradeep said that in Kerala alone, 57 lakh accounts, about 20% of the total, require renewal of Know Your Account (re-KYC), he said. He stressed the need for the re-KYC for accounts that have completed 10 years, including PM Jan Dhan Yojana accounts. Benefits such as subsidies from government schemes cannot be withdrawn from accounts with pending re-KYC, he said.

Mr. Pradeep also explained the benefits of government-backed insurance and pension schemes, including the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and the Atal Pension Yojana (APY), especially for unorganised sector workers. He further pointed out that there are unclaimed deposits worth ₹67,000 crore across India, underscoring the importance of nominations in all banking services.

Mr. Pradeep said that 500 panchayats in Kerala have so far been covered under the three-month saturation campaign for financial inclusion. The nationwide drive will continue until September 30, 2025.