What changed
This is a consolidation of existing guidelines into a master circular for 2007-2008, replacing the previous one from July 2006. No new policy changes were introduced; it compiles all prior instructions on relief measures for natural calamities.
What it means for you
Banks must maintain a pre-approved action plan for natural calamities, including helpline numbers and coordination with district authorities. They are expected to provide timely credit assistance to agriculturists, small industries, and other affected borrowers, factoring in any state subsidies.
What you must do
- Ensure all branches have standing instructions for immediate action after a calamity declaration.
- Convene DCC or SLBC meetings promptly after a calamity to coordinate relief measures.
- Publicize disaster management arrangements, including helpline numbers.
- Coordinate with state/district authorities to assess borrower needs and integrate subsidies into credit assistance.
Who it affects
All scheduled commercial banks (excluding RRBs), Cooperative banks, Borrowers in calamity-affected areas (agriculturists, small industries, artisans, small businesses)
What triggers the relief measures under this circular?
Relief measures are triggered when a natural calamity is officially declared by district or state authorities. Banks must then activate their standing instructions and convene coordination meetings.
How should banks determine the quantum of assistance?
Banks should assess the borrower's actual needs in consultation with district authorities, and take into account any assistance or subsidy received from the state government or other agencies.