The Reserve Bank of India (RBI) has advised Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs) to take note of the latest Government notification designating an entity as a “Terrorist Organisation” under the Unlawful Activities (Prevention) Act, 1967 (UAPA).
In its circular on Thrusday, the RBI referred to Ministry of Home Affairs (MHA) notifications dated September 16, 2026, under which Shahzad Bhatti Network (SBN) has been included in the First Schedule of the UAPA, 1967 as Entry 46 through Statutory Order (S.O.) 5080(E).
The RBI said regulated entities must follow the procedures prescribed under its KYC Directions, 2025, and the UAPA Order dated February 2, 2021, including amendments to the relevant UAPA schedules.
The directions cover UCBs and RCBs along with commercial banks, small finance banks, payment banks, Regional Rural Banks, NBFCs and other regulated entities.
The RBI also reiterated that regulated entities should report details of accounts resembling individuals or entities appearing in the relevant lists to FIU-IND and advise the MHA as required under the applicable UAPA provisions.
The RBI asked regulated entities to take note of the notification and comply with future amendments to Schedule I of the UAPA.
