**Executive Summary**
This document outlines draft guidelines from the Reserve Bank of India (RBI) for Non-Banking Financial Companies (NBFCs) regarding relief measures in areas affected by natural calamities. The guidelines, effective April 1, 2026, cover eligibility, resolution plans, asset classification, income recognition, and reporting requirements. NBFCs are required to upload data on relief measures on a half-yearly basis to the CIMS portal.
**Key Points / Main Content**
* **Preliminary Provisions:**
* The guidelines are titled "Non-Banking Financial Companies-Relief Measures in areas affected by Natural Calamities."
* They are effective from April 1, 2026.
* Applicable to NBFCs for borrowers impacted by natural calamities or external events leading to economic disruption.
* **General Instructions:**
* The guidelines come into effect upon declaration of a natural calamity or external event by Central/State Governments.
* Decisions from special SLBC/DCC meetings should be communicated to NBFCs.
* NBFCs must publicize the decisions of these meetings for the benefit of affected borrowers.
* **Policy/Procedures for Dealing with Natural Calamities:**
* Credit assessments by NBFCs must consider the potential impact of natural calamities.
* NBFCs' credit policies must include provisions for resolution, relief measures, and a delegation matrix for implementation.
* Similar procedures apply to other external events as declared by the Government.
* **Eligibility & Coverage:**
* Eligibility for resolution is limited to borrowers with 'Standard' accounts not in default for more than 30 days on the date of the calamity.
* Borrowers not meeting these criteria may be considered under existing RBI guidelines on stressed assets.
* The guidelines do not apply to NBFCs' refinance portfolio.
* **Resolution Plan:**
* Resolution plans may include rescheduling payments, converting interest, or granting moratoria based on viability assessments.
* Additional finance may be sanctioned, subject to viability assessment.
* Resolution invocation must occur within 45 days of the calamity declaration (unless extended) and be implemented within 90 days of invocation.
* **Asset Classification, Income Recognition, and Restructuring:**
* Borrower accounts classified as 'Standard' may remain so if a resolution plan is implemented. NPAs may be upgraded to 'Standard' after implementation.
* Subsequent asset classification follows existing RBI guidelines.
* Interest income is recognized on an accrual basis with an additional 5% specific provision.
* Specific conditions apply to repeated restructuring, including cash-basis interest recognition and additional provisioning.
* **Reversal of Provisions and Ancillary Measures:**
* Additional provisions can be written back upon the borrower paying at least 20% of the outstanding debt without becoming an NPA.
* NBFCs may consider insurance proceeds during restructuring.
* Government-notified interest subvention/incentives must be made available.
* For agricultural loans, alternative land title documentation is acceptable.
* **Reporting Requirements:**
* NBFCs must upload data on relief measures on the CIMS portal on a half-yearly basis within 30 days of the end of the half-year (September 30th and March 31st).
* A 'NIL' statement is required if no relief measures are extended.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** These guidelines impact NBFCs by providing a framework for extending relief measures to borrowers affected by natural calamities, influencing their credit policies, asset classification, and provisioning norms.
* **Action Required:** NBFCs need to review and update their credit policies and procedures to align with these guidelines, assess the impact on their portfolio, implement resolution plans where applicable, and ensure timely reporting to the RBI.
**Stakeholder: Borrowers Affected by Natural Calamities**
* **Impact:** Borrowers in areas affected by natural calamities may benefit from these guidelines through potential rescheduling of payments, access to additional finance, and the possibility of avoiding or recovering from NPA status.
* **Action Required:** Borrowers need to be aware of the relief measures available under these guidelines and engage with their NBFCs to explore eligible options, providing necessary documentation and cooperating with the resolution process.
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact:** These guidelines impact the RBI by setting standards for NBFCs' response to natural disasters and promoting financial stability in affected regions.
* **Action Required:** The RBI needs to monitor the implementation of these guidelines by NBFCs, provide clarifications where necessary, and assess their effectiveness in mitigating the impact of natural calamities on the financial system.
Key Entities Referenced
Reserve Bank of India Act, 1934: The act that confers powers to the Reserve Bank of India, referenced as the source of authority for issuing these guidelines.
Non-Banking Financial Companies-Relief Measures in areas affected by Natural Calamities: The primary subject of the document; guidelines for NBFCs to provide relief in areas affected by natural calamities.
Reserve Bank of India: The issuing authority and regulator referenced throughout the document.
Non-Banking Financial Companies: The entities to which these guidelines apply.
SLBC/DCC: Special State Level Bankers' Committee / District Consultative Committee which plays role in declaration and communication related to Natural Calamities
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-
NS ol.
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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
Name(Drop
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1 down from Date Date J9/H9 K9/I9 Text Data
selection from from
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master)
* District to be specified if the
decision to extend relief measures
is by DCC
7