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RBI Allows AIFIs to Waive Fees in Calamity Areas

Current · Source: Reserve Bank of India · RBI/2026-27/74 · issued 29 Apr 2026 · ~2 min read

Quick answerRBI now permits All India Financial Institutions to waive or reduce fees and charges for customers in officially declared calamity zones, for up to one year, effective July 1, 2026.

The rule, in the simplest words

All India Financial Institutions (AIFIs) can choose to cancel or lower fees (charges) for people living in areas that the government says have a disaster (calamity), but only for up to one year.
This new power comes from a rule called Section 33A, added to the RBI's directions on July 1, 2026.
AIFIs must change their internal rule books, teach staff how to spot declared disaster zones, and set up their computer systems to give the fee relief automatically.
They also need to work with government agencies to get quick notice when a disaster is officially declared.

How it plays out — a real example

Rohit, a gold‑loan officer at an AIFI in Indore, receives a government notice that a severe flood has been declared a calamity in his district. He promptly updates the system and grants fee waivers to all affected customers for the next year, helping them manage their loans without extra charges.

What changed

RBI inserted a new section 33A under Chapter IV of the Responsible Business Conduct Directions for AIFIs. This allows AIFIs to voluntarily offer relief like fee waivers or reductions to customers in areas where a calamity has been declared, for a maximum period of one year.

What it means for you

AIFIs now have explicit regulatory cover to provide fee relief during disasters without needing case-by-case approval. This aligns them with similar flexibility already available to banks, enabling faster customer support. Lenders must update their internal policies and systems to implement these discretionary measures from July 1, 2026.

What you must do

Update internal policy manuals to include the new Section 33A on calamity relief measures.
Train operational staff on identifying declared calamity areas and processing fee waivers or reductions.
Ensure system readiness to apply fee relief for up to one year from the date of calamity declaration.
Coordinate with government agencies to get timely notifications of official calamity declarations.

Who it affects

All India Financial Institutions (AIFIs), Customers in calamity-declared areas, Compliance and operations teams at AIFIs

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2026
Decoded by BankPulse 2026-06-17 14:00 IST
Amends — Reserve Bank of India (All India Financial Institutions – Undertaking of Financial Services) –Amendment Direct
Amends — RBI Directions for All-India Financial Institutions

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which AIFIs are covered by this amendment?

The amendment applies to all All India Financial Institutions (AIFIs) as defined under the RBI Act, including entities like NABARD, SIDBI, NHB, and EXIM Bank.

What types of fees or charges can be waived or reduced?

The direction does not specify exact fees, so AIFIs have discretion to waive or reduce any fees and charges they normally levy, such as processing fees, prepayment charges, or late payment penalties, for customers in calamity areas.

Is the relief mandatory or optional for AIFIs?

It is optional. The direction says an AIFI 'at its discretion, may provide' such relief measures. There is no compulsion to offer waivers.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)

Amends Reserve Bank of India (All India Financial Institutions – Undertaking of Financial Services) –Amendment Direct

Amends RBI Directions for All-India Financial Institutions

📜 Read the original circular — full text as issued by RBI

RBI/2026-27/74
 DOR.STR.REC.63/21-04-048/2026-27
 April 29, 2026
 Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Amendment Directions, 2026
 Please refer to Reserve Bank of India (All India Financial Institutions – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026 .
 2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 45L of the Reserve Bank of India Act, 1934 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 IV – Miscellaneous Instructions, part B shall be inserted as under:
 B. Measures in case of declaration of calamity
 33A. An AIFI 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/2026-27/74 · issued 29 Apr 2026. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Ensure system readiness to apply fee relief for up to one year from the date of calamity declaration.

📜 Compliance

Update internal policy manuals to include the new Section 33A on calamity relief measures.
Train operational staff on identifying declared calamity areas and processing fee waivers or reductions.
Coordinate with government agencies to get timely notifications of official calamity declarations.

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 Compliance officer at a bank this circular applies to (All India Financial Institutions (AIFIs), Customers in calamity-declared areas, Compliance and operations teams at AIFIs), your first concrete step on “RBI Allows AIFIs to Waive Fees in Calamity Areas” is: “Update internal policy manuals to include the new Section 33A on calamity relief measures.” (RBI issued this 29 Apr 2026).

Circular: RBI/2026-27/74 -- RBI Allows AIFIs to Waive Fees in Calamity Areas
Issued: 29 Apr 2026
Action required: Update internal policy manuals to include the new Section 33A on calamity relief measures.
Action required: Train operational staff on identifying declared calamity areas and processing fee waivers or reductions.
Action required: Ensure system readiness to apply fee relief for up to one year from the date of calamity declaration.
Action required: Coordinate with government agencies to get timely notifications of official calamity declarations.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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=13440&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.