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RBI Eases Responsible Business Conduct Rules for Commercial Banks During Calamities

Current · Source: Reserve Bank of India · RBI/2026-27/46 · issued 29 Apr 2026 · ~2 min read
Quick answerRBI has amended Responsible Business Conduct Directions to allow banks to operate calamity-hit branches from temporary premises for up to 30 days without prior approval, and to offer relief measures like fee waivers for up to one year in declared calamity areas.
The rule, in the simplest words
How it plays out — a real example

A branch operations officer in Chennai, after a severe flood, sees her branch is damaged. She moves operations to a temporary tent nearby, sends an email to the RBI Regional Office, and within 2 days she is lending again. She also tells her team to open small accounts for displaced families who lost their IDs, so they can receive relief funds.

What changed

A new part E in Chapter V of the Directions now permits banks to run branches from temporary premises for up to 30 days by merely informing the RBI Regional Office, with specific approval needed beyond that. Banks must restore ATMs quickly and provide alternative cash arrangements. They can also open small accounts for displaced persons lacking ID, and offer fee waivers or reductions for up to one year at their discretion.

What it means for you

Banks now have clearer operational flexibility during calamities, reducing the need for prior approvals for temporary branches and enabling faster service restoration. This allows lenders to respond more swiftly to customer needs in disaster-hit areas, potentially lowering reputational and operational risks. The fee waiver option gives banks a tool to support affected customers without regulatory hurdles, but they must balance this with financial prudence.

What you must do

Who it affects

Commercial banks operating in India, Branch managers in calamity-prone regions, Compliance and operations teams, Customers in areas affected by natural disasters

❓ Common questions

Can we operate a branch from temporary premises without prior RBI approval?

Yes, for up to 30 days, you only need to advise the concerned RBI Regional Office. Beyond 30 days, specific approval is required.

What relief measures can we offer to customers in calamity areas?

At your discretion, you may waive or reduce various fees and charges for customers in declared calamity areas, but this relief cannot exceed one year.

How should we handle customers who lost their ID documents in a calamity?

You can open small accounts as per the KYC Directions, 2025, which have relaxed documentation requirements for such cases.

📜 Read the original circular — full text as issued by RBI
RBI/2026-27/46 DOR.STR.REC.35/21-04-048/2026-27 April 29, 2026 Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Amendment Directions, 2026 Please refer to Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026 dated April 29, 2026 . 2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified. 3. These Amendment Directions modify the Directions as under: i. In Chapter V – Financial Inclusion and Accessibility, part E shall be inserted as under: E. Banking services in case of declaration of calamity 121A. A bank may operate their calamity affected branches from temporary premises under advice to the concerned Regional Office of RBI. For continuing the temporary premise beyond 30 days, banks may obtain specific approval from the respective Regional Office of RBI. A bank shall also make arrangements to render banking services in the affected areas by setting up satellite offices, extension counters or mobile banking facilities etc. under intimation to Reserve Bank. 121B. A bank shall take immediate action for restoration of ATM services at the earliest. During the period, it shall provide alternative arrangements to address the immediate cash requirements of the affected areas. 121C. Persons displaced or adversely affected by a calamity may not have access to their identification and personal records. In such cases, small accounts as stipulated in the Reserve Bank of India (Commercial Banks– Know Your Customer) Directions, 2025 , may be opened by banks. 121D. A bank at its discretion, may provide relief measures such as waiver / reduction of various fees and charges in respect of customers in the areas where a calamity has been declared, for a period not exceeding one year. 4. The above amendment shall come into force with effect from July 1, 2026. (Vaibhav Chaturvedi) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/46 · issued 29 Apr 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Update internal policies to allow temporary branch operations with just an advice to RBI Regional Office for up to 30 days.
💻 IT / Systems
  • Establish protocols for rapid ATM restoration and alternative cash arrangements in calamity zones.
📜 Compliance
  • Train staff on opening small accounts under KYC Directions for displaced persons lacking ID.
  • Prepare a discretionary framework for fee waivers/reductions in declared calamity areas, capped at one year.
  • Coordinate with RBI Regional Offices for approvals if temporary premises are needed beyond 30 days.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Branch Manager at a bank this circular applies to (Commercial banks operating in India, Branch managers in calamity-prone regions, Compliance and operations teams, Customers in areas affected by natural disasters), your first concrete step on “RBI Eases Responsible Business Conduct Rules for Commercial Banks During Calamities” is: “Update internal policies to allow temporary branch operations with just an advice to RBI Regional Office for up to 30 days.” (RBI issued this 29 Apr 2026).

  1. Circular: RBI/2026-27/46 -- RBI Eases Responsible Business Conduct Rules for Commercial Banks During Calamities
  2. Issued: 29 Apr 2026
  3. Action required: Update internal policies to allow temporary branch operations with just an advice to RBI Regional Office for up to 30 days.
  4. Action required: Establish protocols for rapid ATM restoration and alternative cash arrangements in calamity zones.
  5. Action required: Train staff on opening small accounts under KYC Directions for displaced persons lacking ID.
  6. Action required: Prepare a discretionary framework for fee waivers/reductions in declared calamity areas, capped at one year.
  7. Action required: Coordinate with RBI Regional Offices for approvals if temporary premises are needed beyond 30 days.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 02 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13410&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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