**Executive Summary**
This document outlines the draft guidelines issued by the Reserve Bank of India regarding relief measures for Non-Banking Financial Companies (NBFCs) operating in areas affected by natural calamities. These guidelines aim to provide a framework for NBFCs to resolve exposures of borrowers impacted by such events, taking effect from April 01, 2026. The guidelines cover various aspects including eligibility, resolution plans, asset classification, income recognition, and reporting requirements.
**Key Points / Main Content**
* **Preliminary Instructions:**
* These guidelines are named "Non-Banking Financial Companies-Relief Measures in areas affected by Natural Calamities".
* They are applicable to NBFCs and address resolution of borrower exposures impacted by natural calamities or external events.
* NBFCs should follow the principles in the Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Directions, 2025 dated November 28, 2025.
* 'Natural calamity' refers to an event recognized under the National Disaster Response Force (NDRF) Framework.
* 'Date of invocation' is the date when the borrower and NBFC agree to proceed with a resolution plan.
* **General Instructions:**
* These directions will be put into effect following declaration of a natural calamity or external event by Central/State Governments.
* Decisions from special SLBC/DCC meetings must be communicated to NBFCs.
* NBFCs must publicize the decisions of the special SLBC/DCC meetings to benefit affected borrowers.
* NBFCs must consider the potential impact of natural calamities on borrowers during credit assessments and incorporate resolution provisions into their credit policies.
* Credit policies must specify relief measures and verifiable parameters.
* Credit policies must outline a delegation matrix for implementing relief measures, including restructuring and additional finance.
* **Eligibility and Resolution Plan:**
* Only borrowers with 'Standard' accounts, not in default for more than 30 days as of the calamity date, are eligible for resolution under these guidelines.
* Other borrowers may be considered for resolution under existing Reserve Bank of India guidelines for stressed assets.
* These directions do not apply to refinance portfolios of NBFCs.
* Resolution plans may include payment rescheduling, interest conversion, and moratoriums, based on borrower viability.
* Additional finance may be sanctioned, subject to viability assessment.
* Resolution must be invoked within 45 days of the calamity declaration and implemented within 90 days of invocation.
* **Asset Classification, Income Recognition and Repeated Restructuring:**
* Borrower accounts classified as 'Standard' may retain this status upon resolution plan implementation, accounts upgraded as 'Standard' after NPA status during the natural calamity and implementation of the resolution plan.
* Subsequent asset classification will follow existing Reserve Bank of India guidelines for income recognition, asset classification, and provisioning.
* Interest income recognition is on an accrual basis, but NBFCs must make an additional 5% provision on outstanding debt.
* Restructured accounts may continue as 'Standard' subject to conditions, with interest income recognized on a cash basis after the second restructuring and additional 5% provisioning for each restructuring instance.
* Additional specific provisions may be written back if the borrower pays at least 20% of the outstanding debt without slipping into NPA.
* **Ancillary Measures and Reporting:**
* NBFCs may consider insurance proceeds when restructuring loans affected by natural calamities.
* Interest subvention and prompt repayment incentives should be made available.
* Existing relief measures by governments should be factored in.
* For agricultural loans, alternative documentation may be accepted for farmers lacking original title records.
* NBFCs may provide further relief, such as fee waivers/reductions, for up to one year.
* NBFCs must upload data on relief measures semi-annually to the CIMS portal within 30 days of the half-year ending.
* A "NIL" statement must be uploaded if no relief measures are extended.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** Must implement these guidelines when providing relief measures in areas affected by natural calamities. They need to adjust their policies, procedures, and reporting systems to comply with these new regulations.
* **Action Required:** Review and update internal credit and operational policies to incorporate these guidelines, train staff on new procedures, and establish processes for reporting relief measures to the CIMS portal.
**Stakeholder: Borrowers Affected by Natural Calamities**
* **Impact:** Potentially benefit from restructured loans, moratoriums, and additional financing to alleviate financial distress caused by natural calamities.
* **Action Required:** Engage with their NBFCs to explore available relief options and provide necessary documentation for assessment and resolution plan implementation.
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact:** Responsible for overseeing the implementation of these guidelines and monitoring the effectiveness of relief measures provided by NBFCs.
* **Action Required:** Ensure effective communication and training for NBFCs, monitor compliance through reporting and audits, and potentially revise guidelines based on feedback and emerging issues.
Key Entities Referenced
Reserve Bank of India: The central bank, issuing guidelines and exercising powers under the Reserve Bank of India Act, 1934.
Non-Banking Financial Companies-Relief Measures in areas affected by Natural Calamities: The core policy document outlining relief measures for NBFCs in areas affected by natural calamities.
Non-Banking Financial Companies: The entities to which the guidelines directly apply.
Reserve Bank of India (Commercial Banks - Resolution of Stressed Assets) Directions, 2025: Referenced RBI directions for guiding principles on resolution of stressed assets.
State Level Bankers' Committee/District Consultative Committee (SLBC/DCC): Fora for decision-making and communication regarding the policy's implementation at the state and district levels.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/ 2025-26/xx
DOR.STR.REC.__./21.04.048/2025-26 ___2026
Draft – Non-Banking Financial Companies - Relief Measures in areas affected
by Natural Calamities
Table of Contents
Chapter I: Preliminary .......................................................................................... 2
A. Short title and commencement .................................................................. 2
B. Applicability ................................................................................................ 2
C. Definitions .................................................................................................. 2
Chapter II. General Instructions ...................................................................... 3
D. Declaration of Natural Calamity ................................................................. 3
E. Policy/Procedures for dealing with Natural Calamities ............................... 3
F. Eligibility & Coverage ................................................................................. 4
Chapter III:Resolution Plan .................................................................................. 4
Chapter IV: Asset Classification .......................................................................... 4
Chapter V: Income recognition and Provisioning .............................................. 5
Chapter VI:Repeated restructuring ..................................................................... 5
Chapter VII: Reversal of Provisions .................................................................... 5
Chapter VIII: Ancillary Measures ......................................................................... 5
Chapter IX: Reporting Requirements .................................................................. 6Introduction
In exercise of powers conferred by Chapter III B of the Reserve Bank of India Act,
1934, the Reserve Bank of India (Reserve Bank) being satisfied that it is necessary
and expedient in the public interest so to do, hereby issues these guidelines
hereinafter specified.
Chapter I: Preliminary
A. Short title and commencement
1. These guidelines shall be called the Non-Banking Financial Companies-
Relief Measures in areas affected by Natural Calamities.
2. These guidelines shall come into force with effect from April 01, 2026.
B. Applicability
3. These guidelines shall be applicable to Non-Banking Financial Companies
(hereinafter collectively referred to as ‘NBFCs’ and individually as a NBFC).
4. These guidelines shall be applicable to resolution of exposures of borrowers
impacted by a natural calamity or, mutatis mutandis, exposures of borrowers
impacted by external events (such as riots / disturbances that result in loss to
economic activity).
5. For the purpose of resolution under these Directions, NBFCs shall be guided by
the principles enshrined in Reserve Bank of India (Commercial Banks –
Resolution of Stressed Assets) Directions, 2025 dated November 28, 2025.
C. Definitions
6. In these guidelines, unless the context states otherwise, the terms herein shall
bear the meaning assigned to them below:
(1) ‘natural calamity’ shall mean an event recognised under the National
Disaster Response Force (NDRF) Framework.
(2) ‘date of invocation’ shall mean the date on which the borrower and the
NBFC agree to proceed with a resolution plan under this framework
through a documented arrangement.7. All other expressions unless defined herein shall have the same meaning as have
been assigned to them under the Banking Regulation Act, 1949 or the Reserve
Bank of India Act, 1934, or any statutory modification or re-enactment thereto or
other regulations issued by the Reserve Bank or the Glossary of Terms published
by the Reserve Bank or as used in commercial parlance, as the case may be.
Chapter II. General Instructions
D. Declaration of Natural Calamity
8. These Directions shall come into effect upon the declaration, by Central / State
Governments (in accordance with the framework placed by the concerned
Government for this purpose), of a natural calamity or other external event.
9. The decisions taken in the special SLBC / DCC meeting shall be communicated
to the NBFCs by the convenor of the respective SLBC / DCC.
10. The decisions of the special SLBC / DCC meeting (s) shall be given adequate
publicity by NBFCs through various methods such as brochures, banners,
advertisement in newspapers, visits by field staff, and other suitable modes, for
the benefit of affected borrowers.
E. Policy/Procedures for dealing with Natural Calamities
11. Credit assessments carried out by a NBFC shall suitably factor in the possible
impact of natural calamities on borrowers who may be impacted by such events.
The credit policy of the NBFC shall incorporate provisions for resolution as
provided for under these Directions, including the objective principles for the
terms of relief to be granted to various borrower / loan categories.
12. The credit policy shall specify the potential relief measures and the verifiable
parameters for making such determination.
13. The credit policy shall also lay down the delegation matrix for deciding and
implementing relief measures (if any), including for restructuring, sanction of
additional finance etc., with focus on the timely implementation of relief measures.
14. In case of other external events, upon declaration of such events by the
Government concerned, SLBC / DCC shall adopt similar procedure as stated
above, for providing relief to the affected borrowers.
3F. Eligibility & Coverage
15. Only those borrowers shall be eligible for resolution under these guidelines whose
accounts are classified as ‘Standard’, and also not in default for more than 30
days with a NBFC in respect of any of their facilities, as on the date of occurrence
of the natural calamity.
16. Borrowers, whose loan accounts do not fulfil the required eligibility conditions for
resolution under these guidelines may continue to be considered for resolution
under the Reserve Bank of India (Non-Banking Financial Companies –
Resolution of Stressed Assets) Directions, 2025 dated November 28, 2025.
17. The provisions of these Directions shall not apply to the refinance portfolio of a
NBFC.
Chapter III:Resolution Plan
18. The resolution plan to be implemented by a NBFC, conforming to these
Directions, may include rescheduling of payments; conversion of any interest
accrued or to be accrued into another credit facility; granting of moratorium etc.
based on an assessment of the viability prospects of the borrower.
19. The resolution plan may also include proposal for sanctioning of additional
finance to address the financial stress of the borrower, subject to due assessment
of the viability prospects of the borrower.
20. Resolution under these guidelines shall be invoked no later than 45 days (unless
an extension has been granted by the Regional Director / Officer-in-Charge of
Reserve Bank) from the date of the declaration of natural calamity and shall be
implemented within 90 days from the date of the invocation.
Chapter IV: Asset Classification
21. If a resolution plan is implemented in adherence to the provisions of these
Directions, borrower accounts which are classified as ‘Standard’ may be retained
as such upon implementation. Borrower accounts which may have slipped into
non-performing asset (NPA) between the date of occurrence of the natural
calamity and implementation of the resolution plan, shall be upgraded as
‘Standard’, upon implementation of the resolution plan.
422. After implementation of the resolution plan in terms of these Directions, the
subsequent asset classification shall be governed by the criteria laid out in the
Reserve Bank of India (Non-Banking Financial Companies-Income Recognition,
Asset Classification and Provisioning) Directions, dated November 28, 2025.
Chapter V: Income recognition and Provisioning
23. Interest income recognition in respect of such borrower accounts shall be on
accrual basis. However, a NBFC shall make an additional specific provision of
five percent of the outstanding debt against such borrower accounts. The
additional specific provisions shall be over and above the applicable prudential
provisions subject to a ceiling of hundred per cent.
Chapter VI:Repeated restructuring
24. Accounts which are restructured under paragraph 18, where a subsequent
restructuring is necessitated under these Directions before reversal of additional
specific provisions as specified at paragraphs 25 and 26, shall continue to be
classified as ‘Standard’, subject to the following conditions:
(1) Interest income shall be recognized on cash basis from the second
restructuring onwards.
(2) Additional specific provisioning of five per cent on the outstanding debt
shall be made for each instance of restructuring made under this
framework. This provisioning shall be over and above the applicable
prudential provisions subject to a ceiling of hundred per cent.
Chapter VII: Reversal of Provisions
25. The additional specific provisions so maintained upon restructuring may be
written back upon the borrower paying at least 20% of the outstanding debt with
the NBFC, without slipping into NPA post implementation of the restructuring, and
without being subjected to another restructuring.
Chapter VIII: Ancillary Measures
26. While restructuring various types of loans in an area affected by a natural
calamity, NBFCs may also take into account the insurance proceeds, if any,
receivable from insurance companies in respect of those loans. The insurance
5proceeds upon receipt shall be adjusted towards the ‘restructured accounts' in
cases where fresh loans have been granted to the borrower. However, a NBFC
may consider restructuring and sanctioning fresh loans without waiting for the
actual receipt of the claim.
27. Interest Subvention/ Prompt Repayment Incentive benefits as notified by the
Government from time to time shall be made available to the eligible categories
of borrowers without any exception.
28. While extending the relief measures under these guidelines, a NBFC shall ensure
that the relief measures already provided/ being provided by GoI / States are duly
factored in.
29. For agricultural loans, where land is taken as security, certificate issued by the
Revenue Department officials, in the absence of original title record, shall be
accepted for financing to farmers who have lost proof of their title such as title
deed or registration certificate issued to registered share-croppers. In the areas
covered by the Sixth Schedule of the Constitution, whereby the land is owned by
the community, certificate issued by community authorities shall be accepted.
30. A NBFC at its discretion, may provide further relief measures such as
waiver/reduction of various fees and charges in respect of customers in the
affected areas, for a period not exceeding one year.
Chapter IX: Reporting Requirements
31. NBFCs shall upload the data on relief measures as per the format given in Annex
on a half-yearly basis within 30 days from the end of the half-year (September
30th and March 31st of every year) on the CIMS portal.
32. In case no relief measures are extended, a ‘NIL’ statement shall be uploaded by
the NBFC.
6Annex
Data Reporting Format
Type of Regulated Entity (RE)
Data on Relief measures extended by REs on account of natural calamities- OVERALL
For
Half
Year Return has to be submitted in Actuals only
ended
_____
Outstanding
eligible for Out of 9 & 10, Credit Additional/fresh Remarks
reschedulement/ Credit facilities % achievement of facilities that are loans provided (indicating
restructuring as restructured/rescheduled rescheduled/restructured restructured/rescheduled to affected State-
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No. of No. of A/cs Amt. No. of
Amt. No. of A/cs Amt. No. of A/cs Amt. Amt.
A/cs (9/7) (10/8) A/cs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
District
State
Name(Drop (Type to be (Sector will
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* District to be specified if the
decision to extend relief measures
is by DCC
7