RBI proposes revised Lead Bank Scheme to make district banking more aaccountable

The Reserve Bank of India (RBI) has proposed revised guidelines for the Lead Bank Scheme (LBS) to strengthen district- and state-level banking operations and invited public comments on the draft circular.

The move aims to clarify the scheme’s objectives, define committee structures, and assign clear roles to key officials, including State Level Bankers’ Committees (SLBCs) and Lead District Managers (LDMs).

Under the proposed changes, the lead bank in each district will coordinate with other banks, district administrations, and government departments to ensure loans, banking services, and government schemes reach rural households, small businesses, farmers, and self-help groups more effectively.

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Meetings at district and block levels will focus on identifying gaps in credit flow, banking access, and scheme implementation, allowing faster, accountable interventions.

RBI has invited individuals and institutions to submit feedback on the draft circular via email with the subject line “Feedback on the Draft Circular on Lead Bank Scheme”. The deadline for submitting comments is March 6, 2026. Feedback will be considered before issuing the final guidelines.

The revised LBS guidelines aim to enhance transparency, improve coordination between banks and government agencies, and ensure financial inclusion reaches priority sectors efficiently.

Strengthening SLBC and LDM offices under the new framework is expected to improve monitoring, reduce delays, and ensure better implementation of banking services and government programs at the district level.

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