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.
Disaster Management authorities can play a crucial role in aiding borrowers affected by riots. In India, the Reserve Bank of India (RBI) has provisions in place to support disaster management authorities in this regard.
  • 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.
Overall, the RBI provisions offer several mechanisms and provisions that enable disaster management authorities to provide meaningful support to riot-affected borrowers in India like the recent riots in Manipur.
Answered a year ago
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