The Reserve Bank of India has issued amendment directions for small finance banks that insert a new section on banking services when a calamity is declared. The changes require banks to keep services available in affected areas through temporary premises and alternative delivery channels, require action to restore ATM access, and permit banks to open small accounts for displaced or adversely affected persons who cannot access identification and personal records. Under the new provisions, a bank may operate a calamity-affected branch from temporary premises after advising the relevant Regional Office of the Reserve Bank of India, but must obtain specific approval to continue from that site beyond 30 days. Banks must also arrange services in affected areas through satellite offices, extension counters or mobile banking facilities under intimation to the Reserve Bank, provide alternative arrangements for immediate cash needs until ATM services are restored, and may waive or reduce fees and charges for customers in declared calamity areas for up to one year. The amendment takes effect on July 1, 2026.
Reserve Bank of India 2026-04-29
Reserve Bank of India adds calamity service continuity requirements for small finance banks from July 1 2026
The Reserve Bank of India has amended directions for small finance banks to introduce specific requirements for maintaining banking services in areas where a calamity is declared. Banks must ensure continuity of services through temporary premises and alternative delivery channels, restore ATM access, and may open small accounts for displaced or adversely affected persons lacking identification, as well as waive or reduce fees and charges for up to one year.