RBI Eases Relief Norms for Disaster-Affected Borrowers

Current Context: On April 29, 2026, the Reserve Bank of India (RBI) issued updated relief norms for borrowers hit by natural calamities.

• The new guidelines, effective July 1, 2026, allow lenders to provide automatic “suo motu” relief without waiting for borrower requests, with a 135‑day opt‑out window.
• Eligibility is restricted to standard accounts not overdue by more than 30 days, ensuring relief goes to otherwise sound borrowers.
• Relief measures include loan restructuring, moratoriums, additional financing, and fee waivers, while restructured NPAs can be upgraded back to Standard once the plan is implemented.
• Banks must make an additional 5% provision on such accounts, balancing relief with prudence.
• Operational flexibility is granted — banks can set up temporary branches, mobile units, and restore ATMs quickly in disaster‑hit areas.
• Resolution plans must be invoked within 45 days of calamity notification and implemented within 90 days thereafter.

Question:

Q.1 As per the Reserve Bank of India guidelines, borrowers are allowed what duration to opt out of automatic relief?
a) 90 days
b) 120 days
c) 135 days
d) 180 days

Answer: c) The new guidelines, effective July 1, 2026, allow lenders to provide automatic “suo motu” relief without waiting for borrower requests, with a 135‑day opt‑out window.