Institutional Arrangements
The Reserve Bank of India has outlined guidelines for relief measures by banks in areas affected by natural calamities. These arrangements include:
Meeting of District Consultative Committee, Special SLBC Meeting, and a proactive approach to identify and provide relief to affected areas.
Discretionary Powers are given to Divisional/Zonal Managers of banks to take swift decisions.
Identification of beneficiaries and coverage of affected areas are crucial in providing relief.
Priorities are set to ensure timely and effective relief.
Agricultural Loans
Crop loans will be provided with:
Identification of loss, issuance of fresh loans, and restructuring of existing loans, including consumption loans and fresh loans.
Fast relief will be provided, and a scale of finance will be determined.
Development Loans will cover investment costs, with terms and conditions including guarantee, security, margin, and rate of interest.
Other Sectors
Artisans and self-employed persons, Small Scale and Tiny Units will also be provided relief.
Other issues include Business Continuity Planning, ensuring access to customers to their bank accounts, and currency management.
Chat with the Master Circular:
Download: Master Circular – Guidelines for Relief Measures by Banks in Areas Affected by Natural Calamities