This becomes important at a time when financial institutions and fraud-prevention agencies are flagging increasing misuse of bank accounts for fraudulent transactions.
FinTech BizNews Service
Mumbai, 05 October, 2026: As concerns grow over mule accounts, financial fraud and disputed banking transactions, passbook printing facilities at Business Correspondent (BC) centres are emerging as an important tool for customers in rural and semi-urban areas to keep closer track of their bank accounts.
For millions of customers in villages and smaller towns, BC outlets serve as the nearest access point for deposits, withdrawals and other basic banking services. However, many such customers do not regularly use mobile banking, internet banking or digital account statements and continue to depend on physical passbooks to verify their transactions.
This becomes important at a time when financial institutions and fraud-prevention agencies are flagging increasing misuse of bank accounts for fraudulent transactions.
A recent study based on Video-KYC data covering around 130 districts between April 2025 and June 2026 identified several districts as vulnerable to mule-account related activity. These included Lakhimpur Kheri, Bareilly, Varanasi, Saharanpur, Muzaffarnagar, Firozabad, Lucknow and Ghaziabad in Uttar Pradesh, Panipat in Haryana and Jodhpur in Rajasthan.
The study reported V-KYC rejection rates of 14.03% in Lakhimpur Kheri, 13.37% in Bareilly and 12.32% in Varanasi, indicating the need for closer monitoring of account activity and customer verification.
It also found that nearly 85-90% of fraud hotspots identified during FY26 were subsequently corroborated through law-enforcement action or media reports, highlighting the growing concern around accounts being used for routing fraudulent funds.
Ashish Misra, Deputy CEO, BLS E-Services Ltd., said, “A large number of customers using assisted banking still depend on physical records rather than digital banking applications. For them, an updated passbook provides immediate confirmation that a deposit or withdrawal has been correctly reflected in their account.”
He added, “With concerns around mule accounts and financial fraud increasing, it is equally important that customers regularly know what is happening in their bank accounts. Passbook printing at BC locations gives them a simple and familiar way to verify transactions and maintain a physical record closer to home.”
Mule accounts are generally bank accounts used to receive or transfer money generated through fraudulent activities. In some cases, account holders may knowingly allow their accounts to be used, while in others customers with limited financial awareness may not immediately notice unusual credits or withdrawals.
For such customers, regular access to an updated passbook can provide an additional layer of visibility.
BLS E-Services has deployed more than 10,000 passbook printers across its Business Correspondent network, enabling customers to update their passbooks at BC outlets itself rather than travelling to a bank branch. According to the company, the network currently facilitates around 2 crore passbook updates every year. The facility allows customers to immediately verify whether a cash deposit has actually been credited, whether a withdrawal has been reflected correctly and what balance remains in the account. This is particularly relevant in areas where banking through BC outlets remains largely trust-driven. Customers may hand over cash for deposit or carry out withdrawals through a BC and may otherwise have to wait until their next branch visit to get the passbook updated.
In case of any dispute over the amount deposited or withdrawn, an updated passbook provides a physical record of the transaction. Regular passbook updates can also help customers notice unfamiliar credits, withdrawals or transfers in their accounts. While passbook printing cannot by itself prevent financial fraud, it can enable customers to identify unusual account activity earlier and approach their bank for verification.
The facility is particularly useful for senior citizens, pensioners, women account holders, government-benefit recipients and customers with limited digital literacy, who may not regularly access mobile banking or digital statements. Business Correspondents have become an important extension of the formal banking network by taking basic banking services closer to customers. With passbook printing now available at thousands of such outlets, BC centres are increasingly functioning not just as transaction points, but also as local verification points for customers to monitor their bank accounts.
