Business Daily from THE HINDU group of publications
Friday, Aug 11, 2006

Cross Currency

Group Sites

Money & Banking - RBI & Other Central Banks
Industry & Economy - Natural Calamities
No collateral for loans up to Rs 10,000 for flood-affected

Our Bureau

Mumbai , Aug. 10

The Reserve Bank of India (RBI) has asked banks to provide immediate financial assistance to those affected by floods and other natural calamities.

As per the instruction issued by the RBI to banks, existing customers of banks affected by calamities will get uninterrupted access to their bank accounts and can also avail themselves of consumption loans up to Rs 10,000 without collateral.

Banks may also extend the period of repayment of restructured term loans ranging from seven to 10 years with one-year moratorium for existing as well as eligible borrowers, depending on the severity of the natural disaster and its recurrence.

Banks must ensure continuous services in case of cheque clearing operations and supply of cash, said an RBI press release. According to the guidelines, banks' branches affected by the calamity may operate from temporary premises. The banks may also continue functioning in the affected areas by opening satellite offices, extension counters or mobile banking facilities.

Keeping in mind the urgent need for cash, the central bank has also instructed banks to consider waiving penalties for accessing fixed deposits before the end of the deposit's tenure.

Conveners of the State Level Bankers' Committee have been asked to hold special meetings in the context of floods in Gujarat, Andhra Pradesh and Maharashtra.

More Stories on : RBI & Other Central Banks | Natural Calamities

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SBI Tiruchi module gives farm loans

Rupee gains against dollar
IRDA for simpler wording of insurance policy
Peerless eyes asset management space
Bond prices gain in last-hour
No collateral for loans up to Rs 10,000 for flood-affected
IOB in currency-swap deal with HSBC
BoB to recast Gujarat operations
YES Bank hikes PLR to 13 pc
Banks to face penalty on CRR defaults
Banks to give prompt flood relief in AP
Call rates unchanged
Bharat Overseas hikes deposit rates
Thomas Cook declares LKP Forex swap ratio
PNB plans to set up subsidiary in Canada
`Outsourcing' protest
Central Bank unions strike postponed
When the Guv locked step with the Finance Minister
Kakodkar's autobiography to be out today

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line