Master Direction for Relief Measures by Banks in Areas Affected by Natural Calamities
This Master Direction outlines the relief measures to be taken by banks in areas affected by natural calamities.
Applicability: This direction applies to all commercial banks, including Regional Rural Banks (RRBs).
Institutional Framework: Banks are required to establish policies and procedures for dealing with natural calamities, and grant discretionary powers to their branch/regional offices.
State Level Bankers’ Committee (SLBC) and District Consultative Committee (DCC) meetings will be held to review the situation and take necessary measures.
Restructuring of Existing Loans: The direction provides guidelines for restructuring of existing loans, including:
Agriculture Loans: Short-term production credit (crop loans) and long-term (investment) credit.
Other Loans: Restructuring of other loans, including asset classification and utilization of insurance claims.
The direction aims to provide relief to borrowers affected by natural calamities and ensure that banks take proactive measures to mitigate the impact of such events.
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