PUBLISHED BY: GREATFUTURE INFO D elhi, September 14, SHABD   The Reserve Bank of India (RBI) has proposed a new framework under which banks will temporarily freeze only the disputed transaction amount, rather than the entire account, when unusual transfers of Rs.1000 or more are flagged as potentially linked to mule accounts or cyber fraud. Banks will be required to use AI-based transaction monitoring systems to identify transfers that are sudden, disappropriate to a customer's declared profile, or linked to a known cyberfraud network. The draft directions are scheduled to take effect on 1st April 2027, although banks can adopt them earlier. According to RBI, the framework follows the Supreme Court’s order dated 4th August 2026, directing it to prescribe and circulate an SOP for temporary debit holds on amounts or accounts linked to money-mule activity and cyber-enabled fraud. RBI’s proposed rules for suspected money-mule accounts will replace the drastic approach of freezing an en...