It impedes the smooth AML and CFT supervision of cross-border institutions and activities. And yet, smooth exchange of information between supervisors is vital in identifying and addressing AML risks. Another flaw is that there are sometimes limited resources for this supervision. And enforcement decisions may conflict with prudential and other interests.
The progress by commercial banks (excluding RRBs) during the year 2010–11 clearly indicates that banks are on the right path towards deploying BCs, villages covered, opening of no-frills accounts, and grant of credit through KCCs and GCCs. The numbers would be much higher if the figures pertaining to RRBs were to be added.