What changed
This is a master circular consolidating existing guidelines issued up to July 1, 2011, into a single reference document for 2012-13. No new policy changes were introduced; it merely compiles prior instructions for easier compliance.
What it means for you
Banks must maintain pre-approved disaster response plans at all branches and regional offices, ensuring immediate action once a calamity is declared. They need to coordinate with district collectors and SLBCs to provide timely credit support, factoring in any government subsidies received by affected persons.
What you must do
- Ensure every branch has standing instructions for relief measures in natural calamity areas.
- Share these instructions with state government authorities and district collectors.
- Convene DCC meetings immediately after a calamity and special SLBC meetings for larger events.
- Publicize disaster management arrangements, including helpline numbers, in affected areas.
Who it affects
All scheduled commercial banks (excluding RRBs), District Consultative Committees (DCCs), State Level Bankers' Committees (SLBCs), Borrowers in calamity-affected areas (agriculturists, SSI units, artisans, small businesses)
What types of natural calamities are covered under this master circular?
The circular covers droughts, floods, cyclones, tidal waves, and other natural calamities that cause widespread damage and require rehabilitation.
Do banks need to create new relief measures for each calamity?
No, banks must have pre-existing standing instructions as a blueprint. The precise credit assistance details can be decided in consultation with district authorities based on the situation.
How should banks handle government subsidies when assessing loan assistance?
Banks should take into account any assistance or subsidy received by the affected person from the state government or other agencies while determining the quantum of credit assistance.