What changed
RBI inserted a new part D in Chapter V of the RRB Responsible Business Conduct Directions, covering banking services during declared calamities. Key additions: branches can operate from temporary premises beyond 30 days with RBI approval; ATMs must be restored urgently with alternative cash arrangements; small accounts can be opened for displaced persons lacking ID; banks may waive or reduce fees for up to one year.
What it means for you
RRBs now have a clear regulatory framework to ensure continuity of banking services in calamity-hit areas. This reduces operational ambiguity and allows faster relief to affected customers. Banks can use temporary premises, mobile units, and fee waivers to support communities, but must keep RBI informed and seek approval for extended temporary operations.
What you must do
- Update internal policies and SOPs for calamity response by July 1, 2026.
- Train branch staff on opening small accounts under KYC Directions for displaced persons.
- Establish protocols for temporary premises, satellite offices, and mobile banking during calamities.
- Ensure ATM restoration plans include alternative cash arrangements for affected areas.
- Prepare fee waiver/reduction frameworks for up to one year, with board approval.
Who it affects
Regional Rural Banks (RRBs), RRB branch managers in calamity-prone areas, RRB compliance and risk management teams, Customers in areas affected by declared calamities
Can we operate a branch from temporary premises without prior RBI approval?
Yes, you can operate from temporary premises immediately under advice to the concerned RBI Regional Office. However, if you need to continue beyond 30 days, you must obtain specific approval from that Regional Office.
What relief measures can we offer to customers during a calamity?
At your discretion, you may waive or reduce various fees and charges for customers in the declared calamity area, for a period not exceeding one year. This is not mandatory but permitted.
How do we handle customers who have lost their ID documents in a calamity?
You can open small accounts as per the RBI KYC Directions for RRBs, 2025, for persons displaced or adversely affected by the calamity who cannot produce identification or personal records.