Source: Reserve Bank of India · RBI/2006-2007/231 · issued 10 Jan 2007 · ~1 min read
Quick answerRBI assigns State Bank of Patiala as Lead Bank for the newly formed Barnala district in Punjab, carved from Sangrur. No other district lead bank changes.
The rule, in the simplest words
The RBI assigned State Bank of Patiala as the Lead Bank for the new Barnala district in Punjab.
The Lead Bank is responsible for coordinating banking development and credit planning for the district's 181 villages.
Other lead banks in Punjab see no change in their responsibilities.
How it plays out — a real example
The officer meets with local farmers to understand their needs and develops a plan to provide them with loans at competitive interest rates. The officer also works with other banks in the district to ensure that they are aware of the new Lead Bank's responsibilities and can work together to achieve financial inclusion. A payments & clearing officer in Barnala works with the State Bank of Patiala to ensure that the district's farmers have access to credit for their crops.
What changed
The Government of Punjab created Barnala district from Sangrur effective November 19, 2006. RBI assigned Lead Bank responsibility for Barnala to State Bank of Patiala. Lead bank responsibilities for all other Punjab districts remain unchanged.
What it means for you
State Bank of Patiala must now coordinate banking development and credit planning for Barnala's 181 villages across three tehsils. Other lead banks in Punjab see no impact. This ensures focused financial inclusion and priority sector lending in the new district.
What you must do
State Bank of Patiala should update its lead bank district plans to include Barnala's villages and economic profile.
All banks operating in Barnala should align with the new lead bank for district credit committee meetings and reporting.
Lead banks of other Punjab districts need no action; their responsibilities remain unchanged.
Who it affects
State Bank of Patiala (new lead bank for Barnala), Banks with branches in Barnala district, Lead banks of other Punjab districts (no change)
❓ Common questions
Regulatory timeline
Stated effective dateeffective November 19, 2006
Decoded by BankPulse2026-06-19 18:15 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Why was Barnala made a separate district?
The Government of Punjab created Barnala district from Sangrur for administrative reasons, effective November 19, 2006.
Does this affect lead bank arrangements in other Punjab districts?
No, RBI explicitly states there is no change in lead bank responsibilities for any other district in Punjab.
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/231
RPCD.CO.LBS.BC.No. 41/02.08.01/2006-07
January 10, 2007
The Chairman
All Lead Banks
Dear Sir,
Formation of new district in Punjab
–
Assignment of Lead Bank responsibility
The Department of Revenue and Rehabilitation,
Government of Punjab vide their Gazette Notification No.1/5/06-RE-II(1)/12617
dated November 8, 2006 have advised about the formation of new district viz.
Barnala covering Barnala Tehsil (130 villages), Tapa Sub-Tehsil (27 Villages)
and Badhaur Sub-Tehsil (24 Villages) carved out of the existing district of
Sangrur with effect from 19 th day of November, 2006.
2. It has been decided to assign
the Lead Bank responsibility of the new district to State Bank of Patiala.
3. There is no change in the lead
bank responsibilities of other districts in the State.
Yours faithfully,
(A.K.Bhandari)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/231 · issued 10 Jan 2007. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (State Bank of Patiala (new lead bank for Barnala), Banks with branches in Barnala district, Lead banks of other Punjab districts (no change)), your first concrete step on “Lead Bank for New Barnala District in Punjab” is: “State Bank of Patiala should update its lead bank district plans to include Barnala's villages and economic profile.” (RBI issued this 10 Jan 2007).
Circular: RBI/2006-2007/231 -- Lead Bank for New Barnala District in Punjab
Issued: 10 Jan 2007
Action required: State Bank of Patiala should update its lead bank district plans to include Barnala's villages and economic profile.
Action required: All banks operating in Barnala should align with the new lead bank for district credit committee meetings and reporting.
Action required: Lead banks of other Punjab districts need no action; their responsibilities remain unchanged.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3241&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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