What changed
Karnataka formed two new districts—Ramanagara and Chikkaballapura—effective September 10, 2007, by carving talukas from Bangalore Rural and Kolar districts respectively. RBI assigned lead bank responsibility: Canara Bank for Chikkaballapura on a regular basis, and Corporation Bank for Ramanagara on a temporary basis until March 2009, subject to review. No changes were made to lead bank responsibilities for other districts in the state.
What it means for you
Banks operating in these new districts must align with the assigned lead bank for coordination of credit and development activities. Corporation Bank's temporary role in Ramanagara means it should prepare for a possible handover after March 2009. Other lead banks in Karnataka remain unaffected, ensuring continuity in their respective districts.
What you must do
- Acknowledge receipt of this circular to RBI as instructed.
- Update internal records to reflect Canara Bank as lead bank for Chikkaballapura and Corporation Bank for Ramanagara.
- Coordinate with the assigned lead banks for district-level credit planning and priority sector lending targets.
- Monitor the temporary assignment for Ramanagara and prepare for potential changes post-March 2009.
Who it affects
Canara Bank (lead bank for Chikkaballapura), Corporation Bank (temporary lead bank for Ramanagara), All banks operating in Ramanagara and Chikkaballapura districts, Lead banks of other Karnataka districts (no change)
Why was Corporation Bank assigned only temporarily for Ramanagara?
RBI assigned Corporation Bank on a temporary basis until March 2009, subject to review, likely to assess operational feasibility before making a permanent assignment.
Does this circular affect lead bank responsibilities in other Karnataka districts?
No, the circular explicitly states there is no change in lead bank responsibilities for other districts in the state.