Reserve Bank of India allows banks to aid disaster-hit borrowers
Big update from the Reserve Bank of India: Starting July 1, banks can step in and support borrowers affected by natural disasters without waiting for any formal requests.
This means if your area gets hit by a recognized calamity, your bank can offer things like payment breaks, extra loans, or rescheduling your dues, all on its own.
The move comes as weather disruptions are hitting essential sectors more often.
Borrowers have 135 days, 5% provision
If you are impacted, you will have 135 days after the disaster is declared to decide if you want this relief or not.
Even if your loan status slips during this period, it can be restored once things are sorted out.
There is a small catch: banks need to set aside an extra 5% for these restructured loans, but existing rules still apply otherwise.