Categories: Bank 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.

Surendra Naik

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Surendra Naik

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