What changed
The Ministry of Home Affairs issued three gazette notifications on February 17, 2023, designating one individual (Harwinder Singh Sandhu @ Rinda) and two organisations (Jammu and Kashmir Ghaznavi Force and Khalistan Tiger Force, including all their manifestations and front organisations) as 'Individual Terrorist' and 'Terrorist Organisations' under the UAPA, 1967. RBI has now communicated these additions to all regulated entities, reiterating that the existing KYC Master Direction's UAPA compliance framework applies to these new listings and any future amendments to Schedule I and IV.
What it means for you
Banks and other regulated entities must immediately update their screening systems to flag any accounts or transactions linked to these newly designated entities and individual. The existing obligation to report matches to FIU-IND and the Ministry of Home Affairs under the UAPA order of February 2, 2021, now extends to these additions. Failure to comply could lead to regulatory action, as the RBI has stressed meticulous adherence to the UAPA framework.
What you must do
- Update your AML/KYC screening databases to include the three new entries: Jammu and Kashmir Ghaznavi Force, Harwinder Singh Sandhu @ Rinda, and Khalistan Tiger Force, along with all their manifestations and front organisations.
- Cross-check existing customer accounts and transactions against these new listings and report any matches to FIU-IND and the Ministry of Home Affairs as per the UAPA order of February 2, 2021.
- Ensure your compliance team monitors future MHA gazette amendments to Schedule I and IV of the UAPA, 1967, and applies them immediately without waiting for a separate RBI circular.
- Reinforce staff training on the UAPA compliance procedures outlined in the Master Direction on KYC, particularly Sections 52 and 53.
Who it affects
All scheduled commercial banks, All non-banking financial companies (NBFCs), All payment system operators, All other regulated entities under RBI's purview
What exactly do I need to do with these new UAPA listings?
You must immediately add the three entries—Jammu and Kashmir Ghaznavi Force, Harwinder Singh Sandhu @ Rinda, and Khalistan Tiger Force (including all manifestations and front organisations)—to your AML screening systems. Then, run a retrospective check on your existing customer base and transactions. Any match must be reported to FIU-IND and the Ministry of Home Affairs as per the UAPA order of February 2, 2021.
Does this circular apply only to banks, or to all regulated entities?
It applies to all regulated entities (REs) under RBI's supervision, including banks, NBFCs, payment system operators, and others. The circular is addressed to 'The Chairpersons/ CEOs of all the Regulated Entities'.
Will RBI issue separate circulars for future UAPA amendments?
No. The circular explicitly states that REs 'shall also take note of any future amendments to Schedule I and IV of the UAPA, 1967, for immediate necessary compliance.' You are expected to monitor MHA gazette notifications independently and apply them without waiting for a separate RBI directive.