Virtual currency risks: users face security, legal, AML/CFT and payment-system uncertainties with no authorised recourse.
The Reserve Bank cautions that Virtual Currencies are not authorised by any central bank, that operators lack regulatory approvals, and that users face electronic wallet security risks, absence of centralised dispute/charge-back mechanisms, price volatility, uncertain legal status of trading platforms, and AML/CFT exposure; the Bank is examining these activities under existing foreign exchange and payment systems laws and regulations.

KYC non-compliance prompts regulatory monetary penalty after show cause process for cooperative bank AML failures.
The central banking regulator imposed a monetary penalty on The Kakinada District Co operative Central Bank Ltd. under powers available through the Banking Regulation Act as applicable to co operative societies for failure to adhere to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. The regulator issued a show cause notice, considered the bank's written reply and personal submissions, found the violation substantiated, and exercised statutory authority to levy the penalty.

KYC and AML non-compliance results in regulator imposing monetary penalty after violation found substantiated following show-cause process.
The Reserve Bank of India imposed a monetary penalty on The Coimbatore District Central Co-operative Bank Ltd. for non-adherence to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines under statutory powers applicable to co-operative societies. The penalty followed issuance of a show cause notice, consideration of the bank's written reply and personal submissions, and a regulatory finding that the violations were substantiated and warranted imposition of a financial penalty.