How can Disaster Management authorities aid borrowers in the aftermath of riots
Discuss the mechanism and provisions that RBI's riot provisions offer to disaster management authorities to further aid borrowers affected by riots like the one in Manipur recently.
- As per RBI guidelines, banks and financial institutions have been directed to extend the repayment period for crop loans and other agricultural loans in case of natural calamities like riots.
- Disaster management authorities can also seek relief from the RBI to waive off interest or penalty charges on loans taken by riot-affected borrowers.
- RBI guidelines also allow banks to restructure the loans of riot-affected borrowers, providing them with better repayment terms that align with their current financial situation.
- Moreover, under RBI's priority sector lending guidelines, banks are directed to provide loans to riot-affected borrowers for businesses, agriculture, and allied activities.
- Disaster management authorities can also work closely with banks to provide loan counselling and other financial education programs to help affected borrowers make informed financial decisions.
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a year ago