The Reserve Bank of India (RBI) has released a draft circular seeking public feedback on the revised guidelines for the Lead Bank Scheme. These guidelines, announced by RBI Governor Sanjay Malhotra, aim to streamline operational aspects and enhance the Scheme’s objectives. The proposed changes include refining the Scheme’s goals, restructuring various forums, clarifying roles, and strengthening State Level Bankers’ Committee and Lead District Manager offices.
Interested parties can provide feedback on the draft Circular by emailing their comments with the subject line ‘Feedback on the Draft Circular on Lead Bank Scheme’ by March 6, 2026. The Lead Bank Scheme, introduced by the RBI in 1969, focuses on coordinating banks and developmental agencies to improve bank finance flow to priority sectors and rural development. A designated bank in each district takes on the lead bank role to coordinate credit institutions and government efforts.
The Lead Bank Scheme underwent a review in 2009 by the High Level Committee of the RBI due to changes in the financial sector. Stakeholders, including State Governments, banks, and NGOs, agreed on the Scheme’s continued relevance. Guidelines were subsequently issued to SLBC convenor banks and lead banks for implementation. Private sector banks were encouraged to play a more active role in the Scheme by leveraging technology, contributing to strategic planning, and participating in District Credit Plan preparation and execution.
