What changed
The Reserve Bank of India has repealed the 2018 Master Direction on relief measures for RRBs in natural calamity areas, effective July 1, 2026. It is replaced by four new amendment directions covering stressed assets, income recognition, responsible business conduct, and credit risk management.
What it means for you
RRBs must now comply with updated frameworks for stressed asset resolution, asset classification, provisioning, and credit risk management instead of the old natural calamity relief rules. Existing actions under the repealed direction remain valid, and any ongoing proceedings continue unaffected.
What you must do
- Review and align RRB policies with the four new amendment directions by July 1, 2026.
- Ensure all ongoing relief measures under the 2018 direction are transitioned smoothly.
- Update internal training and compliance manuals to reflect the new regulatory framework.
Who it affects
Regional Rural Banks (RRBs), RBI compliance and supervision departments, Borrowers in areas affected by natural calamities
What happens to relief measures already granted under the 2018 direction?
All actions, approvals, and acknowledgments under the repealed direction remain valid and are governed by the new directions. Any rights, obligations, or liabilities already incurred continue unchanged.
When do the new directions take effect?
The new directions take effect from July 1, 2026, giving RRBs time to prepare for compliance.