RBI Sanctions Updates and DGFT Cross-Border Trade Realignment

This report covers banking regulation, cross-border payments, and liquidity management from August 18 to August 25, 2026. Key developments include a significant update to anti-terrorist financing lists by the RBI and a DGFT amendment allowing settlement of trade transactions in ACU currencies.

Key Statistics

Weekly Executive Summary

• The Reserve Bank of India (RBI) issued a series of circulars amending 21 entries in the UNSC ISIL and Al-Qaida Sanctions List to tighten capital controls under the UAPA.
• The Directorate General of Foreign Trade (DGFT) amended the Foreign Trade Policy 2023 to permit trade settlement in ACU Dollar or ACU Euro per RBI notifications (Ref).
• The European Central Bank (ECB) warned of a potential AI-driven asset bubble correction and prepared markets for a possible 25-bps rate hike in September following stable consumer inflatio…