“A bank need not wait for receipt of a formal request from a borrower and may decide to suo motu implement a resolution plan for the impacted borrowers consequent to the recommendation of SLBC,” RBI said in the final norms on relief measures in areas affected by natural calamities.
The resolution is only for loans that are standard but are not in default for more than 30 days with the bank in respect of any of their facilities, as on the date of occurrence of the calamity.
The final norms mandate that resolution should be invoked no later than 45 days from the date of the declaration of the calamity and shall be implemented within 135 days from the date of the declaration.