(a) whether the Reserve Bank of India (RBI) has given any instructions with regard to
problems caused by floods in some States;
(b) if so, the details thereof, State-wise including Andhra Pradesh; and
(c) the future action plan in this direction?
(a) whether the Reserve Bank of India (RBI) has given any instructions with regard to
problems caused by floods in some States;
(b) if so, the details thereof, State-wise including Andhra Pradesh; and
(c) the future action plan in this direction?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI NAMONARAIN MEENA)
(a): Reserve Bank of India (RBI) has issued comprehensive guidelines to all Scheduled
Commercial Banks vide Master Circular No. RPCD.No. PLFS.BC.1/05.04.02/2009-10 dated 1st
July, 2009 on relief measures to be extended by banks in the areas affected by natural
calamities, including floods.
(b) & (c) :The relief measures enunciated in the above Master Circular include, inter alia,
the following:
(a) conversion of the principal amount outstanding in the crop loans and agriculture term
loans as well as accrued interest thereon into term loans;
(b) conversion/rescheduling loans and the interest accrued thereon for periods ranging
from 3 to 10 years depending upon the frequency of crop failures/intensity of
damage to crops;
(c) fresh crop loans for affected farmers;
(d) treatment of converted/rescheduled agri-loans as `current dues`;
(e) non-compounding of interest in respect of loans converted/rescheduled etc;
(f) relaxed security and margin norms;
(g) provision of consumption loans to agriculturists whose crops have been damaged; and
(h) moratorium period of at least one year, while restructuring.
The Master Circular dated 1st July, 2009 is available on the website of RBI at
www.rbi.org.in.
The above guidelines are applicable in all States/Union Territories of the country including
Andhra Pradesh.