RBI’s 2026 Disaster-Responsive Banking Directions: What Commercial Banks Must Implement

The Reserve Bank of India has notified the Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Amendment Directions, 2026, introducing a structured framework to ensure uninterrupted and inclusive banking services in areas officially declared as calamity-affected. These amendments, effective from July 1, 2026, impose clear responsibilities on banks to support customers and maintain basic financial services during and after natural disasters or similar emergencies.

The changes are embedded in Chapter V – Financial Inclusion and Accessibility, through a newly inserted Part E: Banking services in case of declaration of calamity, and are backed by the powers granted to RBI under sections 21 and 35A of the Banking Regulation Act, 1949.

This article breaks down the amended provisions—121A, 121B, 121C and 121D—and explains what they mean for commercial banks, their customers, and the broader financial inclusion and disaster management framework.

The Amendment Directions are linked to the earlier Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026 dated April 29, 2026, and are a part of RBI’s broader policy initiative to strengthen resilience in the financial sector.

RBI has exercised its powers under:

  • Section 21 of the Banking Regulation Act, 1949 – relating to control over advances by banks
  • Section 35A of the Banking Regulation Act, 1949 – empowering RBI to issue directions in public interest

RBI has explicitly recorded its satisfaction that these changes are necessary and expedient in the public interest, particularly to ensure continuity of critical financial services in the face of calamities.

Effective Date
The Amendment Directions come into force with effect from July 1, 2026 and are binding on all commercial banks covered under the parent Directions.

New Part E: Banking Services in Case of Declared Calamity

The core changes are incorporated in Part E of Chapter V – Financial Inclusion and Accessibility. This new Part E introduces four specific provisions – 121A to 121D – that collectively define the mandatory and discretionary obligations of banks operating in calamity-affected regions.

1. Operating from Temporary Premises – Provision 121A

Under clause 121A, RBI formally recognises that branches in disaster zones may become unusable or unsafe. To avoid disruption of services, banks are now expressly permitted to operate from temporary premises in such circumstances.

Key requirements under 121A

  1. Temporary branch operations allowed

    • A bank can shift operations of a calamity-affected branch to a temporary premise within the impacted area.
    • This shift is conditional upon providing prior or immediate intimation to the concerned Regional Office of RBI.

  2. Continuation beyond 30 days requires RBI approval

    • If the bank needs to operate from the temporary location for more than 30 days, it must obtain specific approval from the relevant Regional Office of RBI.
    • This ensures supervisory oversight, while allowing operational flexibility on the ground.