What changed
This is an annual master circular consolidating existing guidelines on relief measures for natural calamities, replacing the July 2012 version. No new policy changes were introduced; it compiles all prior instructions into a single reference document for banks.
What it means for you
Banks must maintain pre-approved disaster response plans at all branches and regional offices, ensuring immediate action after a calamity is declared. They are expected to participate in coordinated relief efforts via District Consultative Committees and State Level Bankers' Committees, factoring in any state subsidies when assessing borrower assistance.
What you must do
- Ensure every branch has standing instructions for natural calamity relief, shared with district collectors and state authorities.
- Convene DCC meetings immediately after a calamity and, for large-scale events, a special SLBC meeting to coordinate relief.
- Publicize disaster management arrangements, including helpline numbers, and integrate state subsidies into credit assistance calculations.
Who it affects
All scheduled commercial banks (excluding RRBs), Branches in calamity-prone districts, District Consultative Committees and SLBC conveners, Agricultural, small business, and artisan borrowers
What triggers the relief measures under this circular?
The measures are triggered after a natural calamity (drought, flood, cyclone, etc.) is officially declared by district or state authorities. Banks must then activate their standing instructions.
Do banks need to create new relief policies for each calamity?
No. The circular requires banks to have a pre-existing blueprint of action—standing instructions—so that relief can be deployed immediately without delay after a declaration.
How should banks handle state government subsidies when providing credit?
Banks must take into account any assistance or subsidy received by the borrower from the state government or other agencies when determining the quantum of credit assistance.