What changed
The Government of Tamil Nadu formed Ariyalur district by splitting Perambalur district into two: Perambalur (with three taluks) and Ariyalur (with three taluks). RBI has assigned lead bank responsibility for Ariyalur to State Bank of India with immediate effect, while Indian Overseas Bank continues as lead bank for the remaining Perambalur district.
What it means for you
Banks operating in the new Ariyalur district must now coordinate with SBI as the lead bank for government schemes, credit planning, and financial inclusion initiatives. Lenders in Perambalur district continue dealing with Indian Overseas Bank as before. This change is purely administrative and does not affect lead bank arrangements in other Tamil Nadu districts.
What you must do
- Update internal records to reflect SBI as lead bank for Ariyalur district.
- Align branch-level credit plans and priority sector lending targets with SBI's lead bank coordination.
- Ensure all reporting and compliance for Ariyalur district is directed to SBI's lead bank office.
- No action needed for Perambalur district—continue with Indian Overseas Bank as lead bank.
Who it affects
State Bank of India (new lead bank for Ariyalur), Indian Overseas Bank (continues as lead bank for Perambalur), All banks with branches in Ariyalur district, All banks with branches in Perambalur district
Why was Ariyalur district created?
The Government of Tamil Nadu formed Ariyalur district by bifurcating Perambalur district, effective November 23, 2007, as per its order G.O.(Ms)No. 684 dated November 19, 2007.
Does this change affect lead bank responsibilities in other Tamil Nadu districts?
No, the RBI circular explicitly states there is no change in lead bank responsibilities for any other district in the state.
When does the new lead bank assignment take effect?
The assignment of SBI as lead bank for Ariyalur district is effective immediately from the date of the circular, January 15, 2008.