The main suspect in the Rs 300 crore Jijau Masaheb Multi-State Bank scam, uncovered in Maharashtra last year, has been arrested while hiding in Vrindavan under the guise of a sadhu, as reported by TOI.
On September 25, the Maharashtra police’s crime branch, in collaboration with local authorities, apprehended Babban Vishwanath Shinde and brought him back to Maharashtra after securing a remand from the local court, according to Mathura SP (city) Arvind Kumar.
Shinde is accused of embezzling Rs 300 crore from the Jijau Masaheb Multi-State Bank by enticing individuals with promises of high interest rates on their deposits. He persuaded them to invest their money across four branches of the cooperative bank. A total of five cases have been registered against him in the Beed and Dharashiv districts, as stated by a Maharashtra police officer.
In light of such fraudulent activities, banks are now implementing stricter background checks for customers seeking to open accounts through digital channels. While this practice has been associated mainly with credit account approvals, it is being extended to deposit accounts as well, according to sources familiar with the matter.
This initiative aims to eliminate mule accounts—those receiving funds from illegal sources or fraudulent transactions. During a meeting on July 3, Reserve Bank of India Governor Shaktikanta Das urged bank executives to intensify efforts against these accounts.
A senior banker from a private sector bank mentioned that some of the largest banks in the country could be processing Rs 300-400 crore worth of fraudulent transactions through mule accounts monthly, while mid-tier banks may handle around Rs 50-100 crore. This growing concern has led banks to increase scrutiny on accounts opened via their online platforms.