The Reserve Bank of India has issued the Local Area Banks — Responsible Business Conduct Amendment Directions, 2026, introducing specific measures to ensure continuity of banking services in areas affected by natural calamities. A new provision mandates that banks may operate branches from temporary premises with regulatory intimation and approval if required beyond 30 days, while also deploying alternative service channels such as mobile banking units, satellite offices, or extension counters. Banks are required to restore ATM services promptly and provide interim arrangements to meet urgent cash needs. Recognizing documentation challenges faced by displaced individuals, the directions permit opening of small accounts with relaxed requirements under KYC norms. Additionally, banks are allowed to waive or reduce fees and charges for affected customers for up to one year. Effective July 1, 2026, the amendment strengthens financial inclusion, accessibility, and customer protection during disasters.
Reserve Bank of India
RBI/2026-27/54
DOR.STR.REC.43/21-04-048/2026-27 | Dated: April 29, 2026
Reserve Bank of India (Local Area Banks — Responsible Business Conduct) Amendment Directions, 2026
Please refer to Reserve Bank of India (Local Area Banks — Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.
2. Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. These Amendment Directions modify the Directions as under:
i. In Chapter V — Financial Inclusion and Accessibility, part D shall be inserted as under:
D. Banking services in case of declaration of calamity
26A. A bank may operate their calamity affected branches from temporary premises under advice to the concerned Regional Office of RBL For continuing the temporary premise beyond 30 days, banks may obtain specific approval from the respective Regional Office of RBL A bank shall also make arrangements to render banking services in the affected areas by setting up satellite offices, extension counters or mobile banking facilities etc. under intimation to Reserve Bank
26B. A bank shall take immediate action for restoration of ATM services at the earliest. During the period, it shall provide alternative arrangements to address the immediate cash requirements of the affected areas.
26C. Persons displaced or adversely affected by a calamity may not have access to their identification and personal records. In such cases, small accounts as stipulated in the Reserve Bank of India (Local Area Banks— Know Your Customer) Directions, 2025, may be opened by banks.
26D. A bank at its discretion, may provide relief measures such as waiver / reduction of various fees and charges in respect of customers in the areas where a calamity has been declared, for a period not exceeding one year.
4. The above amendment shall come into force with effect from July 1, 2026.
(Vaibhav Chaturvedi)
Chief General Manager
