What changed
RBI forwarded four new UN Security Council 1267 Committee notes (dated May 4, 11, 16, and 27, 2011) to RRBs, updating the consolidated list of individuals and entities linked to Al-Qaida and Taliban. This supersedes the previous circular of May 10, 2011, and requires RRBs to incorporate these changes into their screening processes.
What it means for you
RRBs must immediately update their internal watchlists with the latest UN-designated names to avoid onboarding or servicing prohibited entities. Non-compliance could lead to regulatory action and reputational risk. The circular reinforces the need for rigorous KYC and ongoing account monitoring under the UAPA framework.
What you must do
- Update the consolidated list of terrorist individuals/entities with the four new UN notes (Annex I to IV) from May 2011.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and freeze any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular.
- Acknowledge receipt of this circular to your Regional Office through the Compliance Officer/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and monitoring
What is the source of the updated list?
The list is based on four notes from the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs) to RBI.
Do we need to check only new accounts?
No, you must screen both new accounts before opening and all existing accounts to ensure none are linked to listed individuals or entities.
What action is required if we find a match?
Freeze the funds, financial assets, or economic resources as per the procedure in paragraph 6 of the November 5, 2009 circular, and comply with the UAPA Order.