The Reserve Bank of India has issued draft revised guidelines for the Lead Bank Scheme for public comments. The update seeks to streamline the scheme’s operational framework, clarify institutional roles, and strengthen coordination among banks, governments, and development agencies at the district and state levels. The last date for submitting comments is 6 March 2026.
Purpose of the Lead Bank Scheme
The Lead Bank Scheme was introduced in 1969 to coordinate development activities at the district level. Its core objective is to improve the flow of credit to priority sectors and support inclusive growth. The scheme also aims to deepen financial inclusion by linking banking activity with local development needs.
Key Changes in the Draft
The revised guidelines focus on:
- Fine-tuning the objectives of the scheme.
- Revising the structure, membership, and agenda of its fora.
- Clearly defining the roles and responsibilities of key functionaries.
- Strengthening State Level Bankers’ Committees and Lead District Manager offices.
These changes are intended to improve implementation and make the scheme more effective.
Lead Bank and State-Level Coordination
Under the draft, the RBI will designate a commercial bank as the Lead Bank in each district. This bank will coordinate credit institutions, government departments, and other stakeholders to improve credit delivery and financial inclusion. At the state level, SLBC convenor banks will coordinate all banks and regularly discuss lending-related operational issues with state government officials.
Three-Tier Institutional Structure
The scheme will continue to operate through a three-tier structure:
- Block Level Banker’s Committee at the base level.
- District Consultative Committee and District Level Review Committee at the intermediate level.
- State Level Bankers’ Committee or Union Territory Level Bankers’ Committee at the apex level.
Each forum will include banks, government agencies, and other stakeholders to support coordinated banking development.
Last Modified: April 28, 2026