The Reserve Bank on Monday asked all banks to update the Al Qaida sanctions list as per the new United Nations circular.
"State and Central co-operative banks and regional rural banks are required to update the list of individuals/entities as circulated by the Reserve Bank and before opening any new account, it should be ensured that the name/s of the proposed customer does not appear in the list," a notification from the central bank said.
The RBI also made public the list of entities and individuals it has received from the foreign ministry.
It said action like freezing of funds, financial assets or economic resources of the subjects will happen as per the earlier procedure under the amended Unlawful Activities (Prevention) Amendment Act, 2008.
The Al Qaida has been behind a string of attacks against the developed world assets, including the September 11, 2001 crashes of air planes, due to which it has attracted UN sanctions.