Government Debt Relief Scheme (DRS)

The Reserve Bank of India (RBI) has released guidelines for lenders under the Government Debt Relief Scheme (DRS) aimed at providing financial relief to borrowers, especially farmers, during crises. The DRS allows waivers on interest or principal payments as a last resort. State governments are required to consult committees like the State Level Bankers’ Committee (SLBC) before implementation. Lenders must adhere to prudential norms to avoid undermining credit discipline. The scheme includes a Model Operating Procedure (MOP) to ensure proper implementation. It emphasizes financial stability, avoiding moral hazards, and clear timelines for claims processing.