The Reserve Bank of India has issued revised guidelines for the Lead Bank Scheme after a comprehensive review, superseding all earlier instructions on the framework. The update resets how banks, government agencies, the Reserve Bank of India and the National Bank for Agriculture and Rural Development coordinate at block, district and state levels to support priority sector credit and financial inclusion. It applies to commercial banks excluding foreign banks other than wholly owned subsidiaries, as well as state co-operative banks and district central co-operative banks. The revised framework clarifies the roles of Lead Banks, Lead District Managers, District Development Managers, Lead District Officers and State Level Bankers’ Committee convenor banks, and tightens the operating rules for the scheme’s forums. Block Level Bankers’ Committee, District Consultative Committee, District Level Review Committee and State Level Bankers’ Committee meetings are to be held quarterly, supported by annual calendars, set timelines for agendas and minutes, and follow-up systems to track action points, with virtual participation allowed where needed. Lead banks are directed to post sufficiently senior Lead District Managers, preferably one per district, and provide dedicated staff, office infrastructure, IT connectivity, transport and separate budgets. On implementation, the guidelines adopt a bottom-up credit planning model that runs from Potential Linked Credit Plans and branch plans to block, district and state Annual Credit Plans, with the state plan to be launched by April 1 each year. Member banks must submit a single Lead Bank Scheme management information system return covering targets, disbursements and outstanding loans, while credit-deposit ratio oversight is sharpened through district monitoring bands, special sub-committees and monitorable action plans for weaker districts. The revised instructions also retain service area lending for government-sponsored schemes, prohibit banks from seeking No Due Certificates unless a scheme expressly requires one, and require State Level Bankers’ Committees to monitor unbanked rural centre coverage, statewide digital payments rollout, action plans under the National Strategy for Financial Inclusion 2025-30 and quarterly website updates.
Reserve Bank of India2026-06-19
Reserve Bank of India revises Lead Bank Scheme guidelines with new governance timelines and credit monitoring rules
The Reserve Bank of India has replaced earlier Lead Bank Scheme instructions with revised guidelines that reset coordination on priority sector credit and financial inclusion at block, district and state levels. The overhaul adds tighter governance timelines, clearer responsibilities for Lead District Managers and State Level Bankers’ Committee convenors, and a bottom-up credit planning and reporting framework. It also strengthens oversight of low credit-deposit ratio districts and bars banks from seeking No Due Certificates unless a scheme specifically requires them.