RBI’s Riot Relief Measures

26 Jun 2023

Context: 

The crisis in Manipur has prompted the state government to invoke the Reserve Bank of India’s (RBI’s) riot-relief measures.

RBI’s (relief measures in banks in areas affected by Natural Calamities) direction 2018:

  • Restructuring of Crop Loans:
    • The RBI norms state that short-term crop loans can be restructured for riot-affected borrowers with a maximum repayment period of two years, including one year of moratorium if the loss is between 33 and 50 per cent.
    • If the crop loss is more than 50 per cent, the five-year repayment period may be extended up to a maximum of five years, including the one-year moratorium period. 
    • The restructured portion of the short-term as well as long-term loans may be treated as current dues and need not be classified as non-performing assets
  • Permission given to banks:
    • To Restructure loans with at least one year of moratorium and grant consumption loans, among others.
    • To insist on additional collateral security for such restructured loans.

News Source: business standard

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