A recent press reports said that the Reserve Bank of India has directed banks to incorporate disaster management guidelines for infra, building loans. The Reserve Bank of India as issued a notification to all scheduled commercial banks, directing them to adopt the National Disaster Management guidelines and include these as part of their loan policies and documentation. The guideline will apply to infrastructure projects, commercial buildings, and housing structures.
The RI said that the bank has examined the NDMA guidelines in consultation with the Indian Banks’ Association and National Housing Bank and have suggested that adoption of the guidelines would be in the interest of lenders and borrowers.
The NDMA guidelines specify that instead of depending on civic authorities and architects’ certificates, banks should independently verify whether the proposed structure for infra or home loan is stable and can bear natural hazards like landslides, floods, cyclones and earthquakes.
Ms Alpana Kilawala, chief general manager in the RBI’s department of communications, said, that the guidelines are mandatory, but they don’t have any deadlines and it is upto the banks to incorporate the NDMA guidelines. She said that the banks are free to form their internal panel of experts.