Reserve Bank of India (RBI) issues revised guidelines for relief measures in calamity-affected areas

Key facts

• The Reserve Bank of India (RBI) issued revised guidelines for relief measures in calamity-affected areas, which will come into force from 1 July 2026.
• The directions apply to commercial banks, small finance banks, local area banks, cooperative banks, Non-Banking Financial Companies (NBFCs), and All India Financial Institutions.
• Lenders are permitted to extend relief measures to all borrowers without waiting for requests, with an opt-out clause available for 135 days from the date of natural calamity declaration.
• Banks may operate calamity-affected branches from temporary premises or provide services through satellite offices, extension counters, or mobile banking facilities.
• Banks can provide a waiver or reduction of fees and charges for customers in calamity-declared areas for a period not exceeding one year.
• Borrowers are eligible for resolution if their accounts are classified as Standard and are not in default for more than 30 days as of the date of the calamity.
• Accounts that became Non-Performing Assets (NPAs) between the date of the calamity and the implementation of the resolution plan shall be upgraded to Standard upon implementation.
• Banks are mandated to make an additional specific provision of 5 per cent of the outstanding debt for borrowers under a resolution plan, subject to a ceiling of 100 per cent.