RBI directs regulated entities to screen accounts against 23 individuals newly listed in UAPA Fourth Schedule
Regulated entities' KYC/AML teams must screen for, report and escalate any accounts matching the 23 newly UAPA-listed Fourth Schedule individuals to FIU-IND and the Ministry of Home Affairs
Change
The Reserve Bank of India directed regulated entities to screen for and report accounts matching 23 individuals declared 'Terrorist' and newly listed in the UAPA Fourth Schedule by the Ministry of Home Affairs on 4 July 2026, reporting any matches to FIU-IND and advising MHA per the UAPA Order dated 2 February 2021 (Annex I of the RBI KYC Directions).
Why it matters
RBI's instruction creates an immediate, mandatory screening and reporting obligation against the 4 July 2026 Fourth Schedule entries (S.O. 3623(E) to 3645(E), entries 58 to 80). Regulated entities must apply the procedural steps in the UAPA Order (Annex I of the RBI KYC Directions) to these Schedule IV/I amendments, and to any future amendments; failure to report a match, or to follow the Order, is a breach of the RBI Directions.
Implications
- — Regulated entities' KYC/AML teams must screen their customer base against the 23 individuals newly listed in the UAPA Fourth Schedule on 4 July 2026 and report any resembling accounts to FIU-IND while advising the Ministry of Home Affairs, as required under the UAPA notification dated 2 February 2021 — failure to report constitutes non-compliance with the RBI KYC Directions.
- — Compliance teams across all affected regulated-entity categories must implement the UAPA Order procedure in Annex I of the RBI KYC Directions for the 4 July 2026 Schedule IV/I amendments and apply the same procedure to any future Schedule IV/I amendments — non-application constitutes non-compliance with the RBI Directions.
Who is affected
- — Small Finance Banks, Payment Banks, Urban Co-operative Banks, Rural Co-operative Banks, Regional Rural Banks and Local Area Banks
- — Non-Banking Financial Companies, Asset Reconstruction Companies and All India Financial Institutions
- — KYC/AML and sanctions-screening teams at all RBI-regulated entities