(a) Control room for directing and monitoring relief measures has been set up in Dena Bank, Ahmedabad supported at all times by officers specifically designated for the purpose from SIDBI, NHB, NABARD, Dena Bank and Bank of Baroda.

(b) Nodal offices have been set up by banks in affected areas to monitor and report on the implementation of relief measures to the control room on an ongoing basis.

(c) Banks should endeavour for immediate resumption of banking services at branches which have been damaged/ affected / rendered non-functional by setting up satellite offices, extension counters, mobile banking facilities, or shifting branches to suitable nearby places on temporary basis. Powers have been delegated to the Regional Director for the State of Gujarat, Reserve Bank of India, Ahmedabad, for this purpose.

(d) Loan classification status in case of borrowers affected by the earthquake should be frozen on an 'as-is-where-is' basis uptil March 31, 2003.

(e) Notwithstanding the present status of the account, affected borrowers in the category of small traders, small business, self-employed and small road transporters, etc. should be sanctioned special limits upto Rs.1 lakh for restoration / rehabilitation of their business at interest rates not exceeding Prime Lending Rate(PLR).

(f) Banks should grant loans upto Rs.2 lakh at interest rate not exceeding PLR for repairs / reconstruction of houses / shops damaged by the earthquake.

(g) In regard to advances to SSI, business, trade and industry, banks should consider sanction of additional limits / rescheduling of existing limits under a need based arrangement depending upon the past performance of borrower, conduct of account, etc. The interest on rescheduled loans should be charged at 10 per cent per annum at simple rate upto March 31,2003 and thereafter, at PLR. The interest on additional limits would be charged as per sub-paragraph (h) below.

(h) Loans upto Rs.10 lakh should carry rate of interest at PLR and for loans above Rs.10 lakh, at bank's discretion.

(i) PLR will be uniform for all banks and will be State Bank of India's PLR which at the time of issuing the circular was 12 per cent per annum.

(j) No processing fees will be charged by the banks from the affected beneficiaries.

(k) Financial facilities for repairs / construction of houses/shops and to small traders, small business, self-employed and small road transporters etc. under this package should be reckoned as part of priority sector lending.

(l) Settlement of claims made by nominee of depositors who have lost their lives in the earthquake should be completed within 48 hours and in other cases, on the bank being satisfied about legality of the claim. The successor would be notified about it by the State Agencies. Payment upto Rs.50,000 in deceased claims be released against indemnity and affidavit.

(m) Branch managers may be vested with sufficient discretionary powers for granting such facilities.

(n) Banks are free to evolve their own guidelines on the stipulations on margin, security and repayment schedule in the matter of direct lending for housing to the borrowers with the approval of their boards.

(o) In case of agricultural loans, as a special case banks may not recover either principal or interest from the affected farmers for a period of two years and reschedule the amounts not collected during the two years for a period upto 7 years. The total period of reschedulement including the initial moratorium period should not exceed nine years.

(p) Existing limit of Rs.1000 for grant of consumption loan may be raised upto Rs.2000 per eligible beneficiary. As a measure of further concession, such consumption loans may be granted even though the Gujarat State has not constituted a risk fund as envisaged in the existing instructions of the Reserve bank on the subject.

(q) While sanctioning loans, asset coverage ratio may not be insisted upon.

(i) Extension of pre-shipment credit : In cases where shipment is likely to be delayed beyond the specified time due to the calamity banks may, after satisfying themselves of the genuineness of the case, extend upto 180 days, pre-shipment credit granted for periods less than 180 days (based on the production cycle), at the interest rate applicable for the period upto 180 days (10 per cent per annum) and for the period beyond 180 days and upto 360 days banks may charge the concessional rate applicable for the period beyond 180 days and upto 270 days, (13 per cent per annum). Extension of credit beyond 360 days may also be considered, where necessary, on the basis of bank's commercial judgement and discretion at the rate applicable for `ECNOS-Pre shipment' and with the approval of the bank's Board.

In cases where the pre-shipment credit has been granted in foreign currency, extension beyond 180 days may be allowed as per the actual cost of roll-over instead of applying 2 per cent over the rate charged for the period upto 180 days as per extant instructions.

(ii) Conversion of dues into short term loans : Banks may convert the overdue pre-shipment credit, wherever considered necessary, into a short term loan repayable within a reasonable period of time after taking into account the settlement of ECGC claim, if any, in respect of guarantees taken by the bank. Penal interest which is now required to be decided by the banks should not be charged from the date of advance in case of non-shipment in such cases.

(iii) Application of asset classification norm : Banks need not classify as Non-performing Asset (NPA) pre-shipment credit granted to the exporters where the period of credit has been extended in terms of paragraph (i) above or where the pre-shipment credit has been converted into short term loan in terms of paragraph (ii) above. The advances will be treated as NPA if the interest and/or instalment of principal remains unpaid for 180 days after it has become overdue taking into account the revised due dates fixed by the banks after extension of the period or conversion of the pre-shipment credit, as the case may be.

(i) A reduction in the Bank Rate by half a percentage point from 8 per cent to 7.5 per cent effective close of business on February 16, 2001. All interest rates on advances from the Reserve Bank as also the penal rates on shortfall in reserve requirements which are specifically linked to the bank rate have been revised.

(ii) A reduction in Cash Reserve Ratio (CRR) by 0.5 percentage point from its present level of 8.5 per cent to 8 per cent in two stages by 0.25 percentage point each effective from fortnights beginning February 24, 2001 and March 10, 2001, respectively. This measure would release resources of scheduled commercial banks to the extent of about Rs.2,050 crore at each stage.

(1) Redefining of banks' policies/long term plans. Banks should have a charter for women which must be published. To start with, banks should earmark at least 2 per cent of their net bank credit for women and raise it to 5 per cent in 5 years’ time.

(2) Setting up women cells and designating an officer in each branch exclusively to handle flow of credit to women

(3) Simplification of existing procedural formalities

(4) Orientation of bank officers/staff on gender concerns/credit requirements of women

(5) Publicity campaign for creating awareness about credit facilities

(6) Entrepreneurship development programmes/training facilities for women

(7) Specialised branches for women

(8) Motivational strategies to enthuse bank officials/staff

(9) Monitoring system for submitting regular reports on the credit flow to women.

(10) Data collection

(11) Strengthening of existing schemes

(12) Increasing the limit for non-obtention of collateral security

(13) Involving NGOs/SHGs/women's Cooperatives

(14) Setting up of Mahila Rural Cooperative Banks

(i) Fixed deposit receipts should be handed over or sent to depositors directly against acknowledgement.

(ii) Loans against NRE/FCNR(B) deposits to third parties should be granted only when the depositor himself executes the loan documents in the presence of bank officials and a witness acceptable to the bank. Advances to third parties against such deposits should not be granted on the basis of Power of Attorney.

(iii) Where a fraud has been perpetrated in a non-resident account and there is no involvement of the concerned non-resident depositor and his innocence has been proved to the satisfaction of the bank, banks may pay the deposit proceeds to the depositor on due date even when the investigation is in progress. Banks may, however, obtain necessary documents including an indemnity bond with an acceptable surety from the non-resident depositor before releasing the amount.

(iv) In the event of death of non-resident depositor, banks need not insist on succession certificate as a matter of routine. Since different countries follow different procedures for issuing succession certificates, banks should take a practical view and ascertain the procedure followed in the country of residence of the depositor; and thereafter, obtain such minimum documents for their record as would satisfy the requirements of their being rightful claimant.

(a) he at any time held Indian passport, or

(b) he or either his parents or any of his grand parents were a citizen of India by virtue of the constitution of India or the

Citizenship Act , 1955 (57 of 1955), or

(c) a person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above."