Banking News

Relief measures and rescheduling of loans in area affected by Natural Calamities

The Government of India has reduced the criteria of Crop loss from 50% to 33% for providing input subsidy (compensation) to the farmers. Accordingly, Reserve Bank decided to allow SLBC/DLCC/Banks to take view on rescheduling of loans if the crop loss is 33% or more. Banks may allow maximum period of repayment of up to 2 years (including moratorium period of one year) if the loss is between 33% and 50%. For the crop loss above 50%, the restructured period may be extended to a maximum period of 5 years (including moratorium period of one year).
The relevant paras (5.5, 5.6, 6.3 and 6.7) in the master circular of RBI has been amended and up dated on RBI website.

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