The Hindu : Business : RBI steps for calamity-hit areas

Online edition of India's National Newspaper
Friday, Aug 11, 2006

Business

Business

RBI steps for calamity-hit areas

Special Correspondent

MUMBAI: The Reserve Bank of India (RBI) on Thursday issued instructions to all scheduled banks for ensuring quick restoration of all banking services in areas affected by natural calamities.

The instructions include providing continued access to the customers to their bank accounts and facilitating opening of new accounts by persons affected by natural calamities, especially for availing reliefs given by Government and other agencies.

The guidelines also cover measures to be taken by banks to ensure continuity in other like cheque clearing services and supply of cash.

The guidelines were issued as a follow-up of the recommendations made by an Internal Working Group set by the RBI in accordance with the announcement it had made in its mid-term policy for 2005-06 in October 2005.

Satellite offices

According to the guidelines, in areas where the bank branches are affected by natural calamity, banks may operate from temporary premises, under advice to the Reserve Bank.

Banks have also been asked to ensure rendering of banking services to the affected areas by setting up satellite offices, extension counters or mobile banking facilities. Banks could consider waiving the penalties for accessing accounts, such as, fixed deposits.

Restoration of the functioning of ATMs at the earliest or making alternative arrangements for providing such facilities may be given due importance.

Printer friendly page
Send this article to Friends by E-Mail

Business