Reg Mitra — Regulatory Radar

Regulatory Radar

For CAs and compliance professionals in India

Tuesday, 25 August 2026

What is this?

In this issue: 3 updates from RBI — none carries a deadline.

RBI

2 of 3

1. UN sanctions list amended for 21 entries — re-screen customer records now

Published 19 Aug 2026·RBI-13678

RBI has circulated UNSC amendments to 21 entries on the ISIL/Al-Qaida sanctions list; every RBI-regulated entity must re-screen its customer base.

Who it affects: Examine this circular if Regulated institution type is Commercial Bank or Regulated institution type is Small Finance Bank or Regulated institution type is Payments Bank or Regulated institution type is Urban Cooperative Bank or Regulated institution type is Rural Cooperative Bank or Regulated institution type is Regional Rural Bank or Regulated institution type is Local Area Bank or Regulated institution type is Nbfc or Regulated institution type is Other Regulated Entity or Regulated institution type is All India Financial Institution.

Do this: For a CA, this is an audit-trail item for regulated clients: confirm the amended entries were loaded into the screening tool…

For example: A client is a mid-sized NBFC whose compliance team screens new borrowers at onboarding but only refreshes the existing book quarterly. Quarterly refresh is not enough here — the NBFC is a regulated entity under this circular and must load the 21 amended entries and re-screen its existing accounts under Chapter IX of the KYC Directions, keeping evidence of the run.

Or: An urban co-operative bank client reports a possible name match against one of the amended entries and asks whether it can simply close the account. It cannot self-resolve the listing: it must follow the procedure in the UAPA Order dated February 02, 2021 (amended April 22, 2024) annexed to the KYC Directions, and route any de-listing request to Joint Secretary (CTCR), MHA.

Read the full expert brief → · Official source ↗

2. Four UN sanctions entries amended, including a senior Al-Qaida listing

Published 18 Aug 2026·RBI-13676

RBI has circulated UNSC amendments to four ISIL/Al-Qaida sanctions entries; regulated entities must reload the list and re-screen accounts.

Who it affects: Examine this circular if Regulated institution type is Commercial Bank or Regulated institution type is Small Finance Bank or Regulated institution type is Payments Bank or Regulated institution type is Urban Cooperative Bank or Regulated institution type is Rural Cooperative Bank or Regulated institution type is Regional Rural Bank or Regulated institution type is Local Area Bank or Regulated institution type is Nbfc or Regulated institution type is All India Financial Institution or Regulated institution type is Other Regulated Entity.

Do this: Note this is one of three near-identical circulars issued in the same week, so a single consolidated update covering all three is the efficient response.

For example: An asset reconstruction company client asks whether these UNSC circulars apply to it or only to banks. They apply. The circular is addressed to asset reconstruction companies alongside banks and NBFCs, so the ARC must screen against the amended entries under Chapter IX of the KYC Directions.

Read the full expert brief → · Official source ↗

+ 1 more RBI circular in the client portal →

From Reg Mitra

This newsletter tells you what changed. Reg Mitra, the product behind it, reads each new circular against your own client list — which clients are affected, why, and by when.

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Every “who it affects” line is checked twice against the official text; the supporting quote is in the full brief. Worked examples describe illustrative situations — the requirements in them come from the circulars.

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