The Hindu Business Line : RBI directs banks to provide assistance to rain-hit units

THE Reserve Bank of India on Friday said it has advised banks to provide special package of financial assistance to units affected by the recent rain and floods in Maharashtra.

In a release issued today, the RBI said bank branches have been directed to initiate the package of measures immediately after the district or State authorities declare the area as calamity affected.

Agriculturalists, small-scale industrial units, artisans, small businesses and trading establishments affected by the calamity, would be eligible for the relief package.

The measures include consumption loans to persons affected by calamities for sustenance, waiver of margin requirements or considering as margin the grants, subsidies provided by State governments, provision of credit not only to existing borrowers but also to other eligible persons as also conversion and rescheduling/restructuring of existing loans.

In addition, banks have been advised to increase the limit of consumption loan to be provided to the affected persons in the state up to Rs 5,000 without any collateral.

The limit may be enhanced to Rs 10,000 at the discretion of the branch manager, depending on the repaying capacity of the borrower.

The RBI has asked the convenor bank for the State of Maharashtra to convene a Special State Level Bankers' Committee meeting immediately to discuss the situation and to consider and recommend any special measures that might be required in the affected areas in addition to the RBI's relief package, the release said.

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