Banks and financial institutions have been directed by the RBI to scan all existing accounts to ensure that these are not held by or linked to any entity or individual figuring in the UN list of terrorists or terror-related organisations.

"Banks, financial institutions are required to update the consolidated list of individuals, entities as circulated by Reserve Bank and before opening any new account, it should be ensured that the names of the proposed customer does not appear in the list.

"Further, banks should scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list," the RBI said in a notification on Wednesday.

Earlier in August, RBI had issued a similar direction to scheduled commercial banks and financial institutions asking them to be on vigil so that no account is opened or maintained for entities linked with Al-Qaida and Taliban mentioned in the United Nations.

Again in October, it asked central and state co-operative banks to keep a strict watch on UN-listed terror funding entities that might use the banking operations in the country.

Market regulator SEBI had directed all stock exchanges and other securities intermediaries to keep a strict watch on UN-listed terror funding entities.

According to laid down rules, on receipt of particulars, the home ministry would initiate a verification to be conducted by the state police and the central agencies.

On confirmation that the properties are owned by for the benefit of the designated individuals/entities, an order to freeze the assets would be issued within 24 hours.