Tightening its grip on cybercriminals, RBI has advised banks to close old accounts

Reserve Bank: Reserve Bank of India Governor Shaktikanta Das in a meeting held on Wednesday has directed banks to close the principal accounts. Principal accounts are such bank accounts through which ill-gotten gains are moved. This step has been taken to prevent digital fraud. The meeting was attended by managers, directors and CEOs of public and private banks. The governor has asked banks to intensify awareness campaigns among customers to prevent digital frauds. Shaktikanta Das also discussed ways to ensure banks have strong cyber security controls and avoid third parties. Also Read: Big shock for 1.5 crore Zerodha users, they won't get free trading facility after Sebi's ban, why close Mule accounts? Mule accounts are bank accounts used to store or transfer illegally earned money. Cybercriminals sometimes lure people and blackmail them into opening these accounts. In this situation, the governor has issued this order to stop these criminals. Mul accounts create irregularities in the banking system through which fraudsters illegally transfer these amounts from one place to another. Monitoring these accounts can reduce cases of digital fraud or money laundering. What else was discussed about bridging the gap between banks' credit and deposit growth? The rise in unsecured loans like personal loans and credit cards was also discussed. With the increase in digital transactions, instructions were given on measures to avoid cyber threats. Das also spoke about cash management of banks so that they can meet the demands of their customers. Improvement of credit facility for small and medium enterprises was also discussed. Let us tell you that there was also talk of increasing the participation of banks in RBI's efforts to promote digital banking and financial inclusion. The meeting also questioned why Indian currencies should be used instead of those currencies in international trade agreements. Emphasis was placed on adherence to certain guidelines for collateral lending between banks and NBFCs to assess risks associated with banks' loans to the NBFC sector. Also Read: Gold Price: Know Its Price Before Buying Gold, You'll Be Profitable The post Banks ordered to close old accounts, tighten grip on cybercriminals appeared first on Prabhat Khabar.