Churches in the state of Tamil Nadu will use the money they would have spent on Christmas to help victims of flooding instead.
The worst flooding in more than 100 years is being put down to climate change.
Thousands have been left homeless and scores of people have been killed in India's fifth most populous city.
The Tablet has reported that the region has experienced the heaviest November rainfall for more than 20 years.
India's Environment Minister, Prakash Javadekar, said: "What is happening in Chennai is the result of what has happened for 150 years in the developed world.
"That is what has caused 0.8 degrees Celsius temperature rise. And therefore they must now take action more vigorously."
The Catholic church in India has now called for churches across the country to halt their Christmas planning and instead help with the relief effort.
Cardinal Baselios mar Cleemis, President of the Catholic Bishops' Conference of India said that: "The need of the hour calls us to express solidarity with the flood affected suffering families and communities and to contribute our might for their relief and rehabilitation."
Fr S J Antonysamy, vicar general of Madras Mylapore archdiocese told The Tablet that: "Many of our churches are also under[water].
"Normally, this is the time for carols. But this year, all our parishes are busy with relief work.
"The suffering of the people is immense."
