Reserve Bank of India
The Reserve Bank of India (RBI) has issued new relief rules for people affected by natural disasters. Now banks will not have to wait for customers’ applications. This means that if there is a flood, earthquake or other disaster in any area, the banks themselves can step forward and provide relief to the customers. These new rules will come into effect from July 1, 2026.
RBI has said that banks can provide relief to all eligible customers at their own level. However, if a customer does not want to take this relief, he can opt out of it within 135 days of the declaration of disaster. These rules will be applicable to all types of banks and financial institutions, such as commercial banks, small finance banks, cooperative banks and NBFCs. In times of disaster, banks can also operate from temporary locations to continue their services.
Instructions for arranging cash
Apart from this, services can also be provided to the people through mobile banking, satellite office or extension counter. Instructions have also been given to start ATM services quickly and make arrangements for cash. Banks can reduce or even waive some charges as per their discretion for one year. But this relief will be available only to those accounts which were already in good condition and in which there was no delay of more than 30 days.
NPA accounts will get relief
RBI has also said that if an account becomes a non-performing asset (NPA) after a disaster, it can be brought back to the standard category once the relief scheme is implemented. Also, banks will have to reserve an additional 5% of the money on such accounts. Overall, these new rules have been made to provide quick and easy relief to the people affected by the disaster.
