Guidelines for Relief Measures by Banks in Areas Affected by Natural Calamities
The Reserve Bank of India (RBI) has issued guidelines for banks to provide relief measures in areas affected by natural calamities.
Institutional Framework: The guidelines apply to areas where crop loss is assessed to be 33% or more. A distinction is made between drought and other calamities.
Restructuring/Rescheduling of Existing Loans: Banks may restructure or reschedule existing loans in cases where they have granted fresh loans to borrowers.
Sanctioning of Fresh Loans: Banks are encouraged to sanction fresh loans to affected borrowers.
Other Ancillary Relief Measures: Banks may provide other relief measures, such as moratorium on loan repayments, to affected borrowers.
Applicability: The guidelines also apply to areas affected by riots and disturbances.
Appendix: The Master Circular consolidates various circulars issued by the RBI on the subject.
Chat with the Master Circular:
Download: Master Circular – Guidelines for Relief Measures by banks in areas affected by Natural Calamities