RBI sets calamity-resolution framework for All India Financial Institutions
AIFIs must add calamity-resolution rules to board-approved policies
RBI
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Change
RBI amended the stressed-asset resolution directions for All India Financial Institutions by inserting Chapter VI-A for borrower exposures impacted by government-declared calamities.
Why it matters
The amendment creates a dedicated resolution process for AIFI borrower accounts affected by natural calamities or similar external events. AIFIs must include Chapter VI-A relief principles, verifiable parameters and delegation matrices in board-approved policies, while SLBC, UTLBC and DCC convenors must coordinate special meetings within the prescribed 15-day window after a calamity declaration.
Implications
- — AIFI boards must incorporate Chapter VI-A calamity-resolution provisions into board-approved stressed-asset resolution policies.
- — SLBC and UTLBC convenor banks must call special meetings within 15 days when a declared calamity affects a larger part of a State or Union Territory.
- — DCC convenor banks must call district-level special meetings within 15 days when a declared calamity affects only part of a State or Union Territory.
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