RBI’s new disaster loan relief rules explained: Banks can help borrowers automatically; what changes from July 1

Banks will be allowed to extend relief measures to borrowers in calamity-hit areas without waiting for individual requests, under revised Reserve Bank of India guidelines that will come into force from July 1, 2026.The RBI on Wednesday issued fresh directions after considering stakeholder feedback on draft norms covering relief measures in areas affected by natural calamities. The framework applies to commercial banks, small finance banks, local area banks, cooperative banks, NBFCs and All India Financial Institutions, PTI reported.“Lenders are permitted to extend the relief measures to all borrowers without waiting for a request from them, with an opt-out clause for such borrowers who desire to opt out at any point till the end of 135 days from the date of declaration of natural calamity,” the RBI said.Under the revised norms, banks may run

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