The Reserve Bank of India (RBI) has introduced new guidelines to ensure uninterrupted banking services in areas affected by natural calamities. Under the new rules, banks will be allowed to open Small Accounts for people who have lost their identification documents and personal records due to disasters such as floods, earthquakes, cyclones, landslides, or other calamities.
The PDF of RBI Circular is given at last. Read the details below and download circular.
Small Accounts Can Be Opened for Disaster Victims
RBI circular states that people who have been displaced or adversely affected by a calamity may not have access to their identity documents and personal records.
To help such individuals access banking services, banks may open Small Accounts for them as per the provisions of the RBI (Commercial Banks – Know Your Customer) Directions, 2025.
This provision will come into effect from July 1, 2026.
Banks Can Shift Branches to Temporary Locations
The RBI has also permitted banks to operate calamity-affected branches from temporary premises.
If a bank branch is damaged or becomes non-functional due to a disaster, the bank can shift its operations to a temporary location after informing the concerned RBI Regional Office.
However, if the temporary arrangement is required for more than 30 days, the bank must obtain specific approval from the RBI Regional Office.
The RBI has also directed banks to ensure continued banking services in affected areas by setting up:
- Satellite offices
- Extension counters
- Mobile banking facilities
- Other alternative service arrangements
Banks must inform the RBI about these arrangements.
Restoration of ATM Services Must Be a Priority
Banks must take immediate steps to restore ATM services in disaster-hit areas as quickly as possible.
During the period when ATM services remain unavailable, banks should make alternative arrangements to meet the cash needs of affected residents and customers.
The objective is to ensure that people have access to cash during emergencies.
Relief in Bank Charges Also Allowed
The RBI has also provided flexibility to banks to offer relief to customers in areas where a calamity has been officially declared.
Banks may, at their discretion, waive or reduce various banking fees and charges for customers affected by the disaster.
Such relief can be provided for a period of up to one year from the date of the calamity declaration.
Effective From July 1, 2026
The RBI has clarified that these amendments will come into force from July 1, 2026.
The new measures are expected to help disaster victims access essential banking services quickly, even when they have lost important documents, while also ensuring that banking operations continue smoothly in affected regions.
