**Executive Summary**
This press release, dated January 27, 2026, announces the Reserve Bank of India's (RBI) draft directions regarding relief measures in areas affected by natural calamities. The guidelines rationalise extant prudential norms for resolution plans and harmonise regulatory instructions for different Regulated Entities (REs). Public comments on the draft are invited until February 17, 2026, and the guidelines will be effective from April 01, 2026.
**Key Points / Main Content**
* **Draft Directions for Public Comments:**
* RBI is issuing draft directions for public comments concerning relief measures for REs affected by natural calamities.
* These cover:
* Commercial Banks
* Small Finance Banks
* Local Area Banks
* Urban Co-operative Banks
* Regional Rural Banks
* Rural Co-operative Banks
* Non-Banking Financial Companies
* All India Financial Institutions
* **Salient Features of the Draft Guidelines:**
* Principle-based resolution regime, giving REs complete discretion in resolution plan design and implementation, considering SLBC/DCC decisions.
* Exposures affected by natural calamities, classified as 'Standard' but in default up to 30 days ('SMA-0'), are eligible for relief.
* Dedicated window for resolution framework invocation, with a separate window for Resolution Plan (RP) implementation.
* Restructured exposures remain 'Standard' with income recognition on accrual basis and reduced specific provisioning.
* REs must ensure alternate arrangements for banking services in affected areas.
* **Implementation & Feedback:**
* Guidelines come into force on April 01, 2026.
* Public/Stakeholders are invited to comment on draft guidelines by February 17, 2026.
* Feedback can be submitted via the Reserve Bank's website or via email/post.
**Impact Analysis**
**Stakeholder: Regulated Entities (REs)**
* **Impact:** Must adhere to the rationalised prudential norms for resolution plans in areas affected by natural calamities. This will affect their risk management practices and provisioning requirements.
* **Action Required:** Review the draft guidelines and provide feedback to RBI by February 17, 2026, and implement the guidelines by April 01, 2026.
**Stakeholder: Customers in Calamity-Affected Areas**
* **Impact:** Will benefit from quicker and more efficient implementation of resolution plans for their existing loans. Additionally, they would receive continued banking services.
* **Action Required:** No direct action, but they should be aware of the potential benefits and relief measures available.
**Stakeholder: State Level Bankers' Committee (SLBC) / District Consultative Committee (DCC)**
* **Impact:** Their decisions will be considered in resolution plan design and implementation.
* **Action Required:** Collaborate with REs to design and implement effective resolution plans for affected areas.
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact:** Increased compliance and oversight of REs and financial stability in areas affected by natural calamities.
* **Action Required:** Collect and analyse feedback on draft guidelines, finalise guidelines, and monitor their implementation.
Key Entities Referenced
Reserve Bank of India: The central bank issuing guidelines on relief measures.
Statement on Developmental and Regulatory Policies: A policy statement dated June 08, 2023, which initiated the rationalization of prudential norms for resolution plans related to natural calamities.
Relief Measures in areas affected by Natural Calamities: Draft guidelines for implementation of resolution plans in respect of exposures affected by natural calamities.
Regulated Entities (REs): Entities regulated by the Reserve Bank of India to which the relief measures apply.
State Level Bankers' Committee (SLBC) / District Consultative Committee (DCC): Committees whose decisions are to be considered while designing and implementing resolution plans.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 27, 2026
Relief Measures in areas affected by Natural Calamities
Reserve Bank had announced, as part of the Statement on Developmental and
Regulatory Policies dated June 08, 2023, to issue guidelines rationalising the extant
prudential norms for implementation of resolution plans in respect of exposures
affected by natural calamities, inter alia harmonising the regulatory instructions
applicable to different Regulated Entities (REs). Based on a comprehensive review of
the existing regulatory instructions, including the scope, coverage and prudential
requirements, the following draft Directions are being issued for public comments.
i) Commercial Banks - Relief Measures in areas affected by Natural Calamities
ii) Small Finance Banks - Relief Measures in areas affected by Natural Calamities
iii) Local Area Banks - Relief Measures in areas affected by Natural Calamities
iv) Urban Co-operative Banks - Relief Measures in areas affected by Natural
Calamities
v) Regional Rural Banks - Relief Measures in areas affected by Natural
Calamities
vi) Rural Co-operative Banks - Relief Measures in areas affected by Natural
Calamities
vii) Non-Banking Financial Companies - Relief Measures in areas affected by
Natural Calamities
viii) All India Financial Institutions - Relief Measures in areas affected by Natural
Calamities
2. The following salient features have been incorporated in the draft guidelines:
i. The guidelines envisage a principle-based resolution regime, providing
complete discretion to the RE with respect to design and implementation of
resolution plan, inter alia taking into consideration the decisions of the State
Level Bankers’ Committee (SLBC) / District Consultative Committee (DCC).
ii. The exposures which have been affected by the natural calamity and which
are ‘Standard’ but in default up to 30 days i.e., ‘SMA-0’ on the date of
occurrence of the natural calamity, shall be eligible to be considered for relief
under the guidelines.
iii. To ensure timely implementation of relief measures, a dedicated window has
been prescribed for invocation of the resolution framework along with a
separate window for implementation of Resolution Plan (RP), post invocation.
iv. Exposures restructured as part of relief measures shall continue to be
classified as ‘Standard’ with income recognition on accrual basis, with reduced
additional specific provisioning vis-à-vis other restructured exposures.
v. REs shall make alternate arrangements for providing banking services in the
natural calamity affected areas.2
3. The g uidelines will come into force from April 01, 2026.
4. The comments on the draft guidelines are invited from public / stakeholders by
February 17, 2026. The comments/ feedback may be submitted through the link
under the ‘Connect2Regulate’ Section available on the Reserve Bank’s website.
Comments may alternatively be forwarded to The Chief General Manager, Credit
Risk Group, Department of Regulation, Central Office Reserve Bank of India, 12th /
13th Floor Shahid Bhagat Singh Marg, Fort Mumbai – 400 001 or by email.
(Brij Raj)
Press Release: 2025-2026/1996 Chief General Manager