Reserve Bank of India (RBI) issued revised guidelines for disaster-affected areas

Reserve Bank of India (RBI) issued revised guidelines for disaster-affected areas

¨     Reserve Bank of India (RBI) issued revised guidelines for disaster-affected areas.

¨     The new framework will come into effect from 1 July 2026.

¨     Aim: ensure timely financial relief and reduce procedural delays during natural disasters.

¨     Banks and financial institutions can provide relief without requiring individual requests from borrowers.

¨     Relief will be extended proactively to all eligible borrowers in notified disaster-hit areas.

¨  Borrowers will have an opt-out option within 135 days from the date of disaster declaration.

¨     This ensures quick and hassle-free financial support to affected individuals and businesses.

Applicable to

1.     Commercial banks

2.     Cooperative banks

3.     Small finance banks

4.     Non-Banking Financial Company (NBFCs)

5.     All India Financial Institutions