MuleHunterAI is an artificial intelligence-based software developed by Reserve Bank Innovation Hub (RBIH) to identify mule accounts, scrutinize its financials and execute pre-fed actions over such accounts. This software, although well acclaimed by cyber sleuths, is creating havoc among depositors. Recently, thousands of accounts of particular bank were lien marked automatically by the software. One fine morning, you may find that you are not able to operate your account because MuleHunterAI suspects it to be a Mule. The worst part of such debit freeze or lien marking emanates from the fact that the branch managers are totally unaware of such actions. The problem keeps on aggravating with each passing day after MuleHunterAI action and the poor branch manager is unable to help its customers.
MuleHunterAI is suffering from Machine Learning Menace: The developers of MuleHunterAI ignored the financial realities of Indian diaspora. A bullock cart owner may turn into a Crorepati (millionaire) overnight due to acquisition of his land by the government. A college going student may become a millionaire on account of some generous fellowship. Sudden richness of an account is a suspicious transaction in the eyes of MuleHunterAI. The AI has been taught to hate overnight richness and initiate debit freeze over the account. The freeze initiated by MuleHunterAI can be resolved only by the PMLA officer posted at head office of the bank. The AI may sometimes spare you from debit freeze but lien mark your account fully or partially. The notorious mules have adjusted themselves to the machine learning algo of MuleHunterAI and have devised ways to escape its programming. The innocent depositors are suffering at the hands of MuleHunter.
Branch manager is of no help: As a banking customer, you interact with your relationship manager for normal banking activities. If there is something beyond his control, you visit the branch and meet the branch manager. He is your banking ‘superman’. In case of MuleHunterAI, your ‘superman’ is as helpless as you. The moment an account is frozen, you get a debit freeze message. You dial the customer care number asking for the reason of debit freeze and you are told to contact the nearest branch. You visit the branch and the branch manager asks you for re-KYC. For him, Re-KYC is the panacea for all sort of banking difficulties. If it doesn’t work, he writes an e-mail to the zonal/regional office. The zonal office, in turn, writes to the head office. In head office, the queries from all over India keep on pouring. For a branch manager, it’s difficult to find out the reason for debit freeze/lien marking. You keep on calling the branch manager and he keeps on writing to his superiors. In most of the cases, neither the branch manager nor the officials at zonal officer are aware of the menace of MuleHunterAI. Raising voice against MuleHunterAI action may lead to the charge of collusion with mules. The entire process of getting account activities restored may take a month or so. Till then, you can’t escape sufferings.
Mules have adjusted themselves to the new regime: The mule account operators generally open account with genuine credentials and high value cheque. In certain cases, bank account is opened with Rs. 1 Crore and more. Transaction is done for a month or so and the account is closed. The banks have started providing Bank Receipt Letter (BRL) to account holders to save them from inconvenience of automatic freezing of accounts. Some branch managers are asking their account holders for advance information of impending large transactions. In such cases, the bank officials ‘take care’ of the account. Recently, RBI has found numerous such ‘internal’ accounts in one of the top banks. Such accounts are meant to facilitate anonymous transaction of HNIs and big-ticket depositors. There may be some ways to sedate MuleHunterAI for some chosen account of preferred biggies.
In my view, the branch managers must be taken into loop for initiating MuleHunterAI based action against a bank account. The account holder should be given complete reason for action taken against his bank account. Groping in the darkness of reasons is illogical, unprofessional and against the norms of natural justice.
