RBI Directs Banks to Comply with MHA Terror Designation of SBN
What happened
The Reserve Bank of India advised Urban Co-operative Banks and Rural Co-operative Banks to note a notification from the Ministry of Home Affairs. This notification designated Shahzad Bhatti Network as a “Terrorist Organisation” under the Unlawful Activities (Prevention) Act, 1967. The RBI directed all regulated entities, including commercial banks and NBFCs, to follow KYC Directions, 2025, and report accounts resembling those on the relevant lists to FIU-IND.
Why it matters
The regulatory action increases the compliance and monitoring obligations for financial institutions operating in India. Regulated entities must adhere to specific procedures related to anti-terror financial monitoring and report suspicious accounts as required by the applicable UAPA provisions.
The Reserve Bank of India monitors market trends influenced by government spending.
Who's involved
- Reserve Bank of IndiaIssued the circular advising regulated entities to comply with the designation.
- Ministry of Home AffairsIssued the notification designating Shahzad Bhatti Network as a terrorist organization.
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The entities involved
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Ministry of Home Affairs
government ministry of India
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Reserve Bank of India
central bank of India
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