This episode highlights the failure of bank’s systems and processes for monitoring of accounts. The newly opened accounts under the PMJDY could be very vulnerable to such sharp practices and hence, banks need to clearly guard against them. Kite flyers and the Ponzi scheme operators also sometimes use mule accounts to swindle public money.
I sincerely urge the PCCOs gathered here to seriously introspect on this aspect as this is not one-bank’s headache or a bank-specific issue. It is an industry-wide issue with wider ramifications. Banks should have a robust system to monitor the transactions being undertaken in those accounts for taking proactive action, which entails a better customer protection.