Current · Source: Reserve Bank of India · RBI/2007-2008/223 · issued 15 Jan 2008 · ~2 min read
Quick answerRBI assigns State Bank of India as lead bank for new Ariyalur district in Tamil Nadu, effective immediately. Indian Overseas Bank retains lead role for the reduced Perambalur district. No other district lead responsibilities change.
The rule, in the simplest words
State Bank of India (SBI) is now the lead bank for the new Ariyalur district in Tamil Nadu.
Indian Overseas Bank (IOB) stays as the lead bank for the smaller Perambalur district.
All banks with branches in Ariyalur must now work with SBI for government schemes and credit plans.
No changes happen for other districts in Tamil Nadu—only Ariyalur and Perambalur are affected.
How it plays out — a real example
A branch operations officer in Ariyalur, Priya, updates her branch records to show SBI as the lead bank. She now sends her monthly credit plan reports to SBI's lead bank office instead of Indian Overseas Bank, ensuring her branch aligns with the new coordination for financial inclusion schemes.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/223
RPCD.CO.LBS.BC.No. 46 /02.08.01/2007-08
The Chairman
All Lead Banks
January 15, 2008
Dear Sir,
Formation of new district in Tamil Nadu –
Assignment of Lead Bank responsibility
Revenue Department (RA1(1)), Government of Tamil Nadu, vide its Order G.O.(Ms)No. 684 dated November 19, 2007 have advised about the formation of new district viz. Ariyalur covering three Taluks of Ariyalur, Sendurai, and Udayarpalayam by bifurcating existing Perambalur district with effect from November 23, 2007, in the manner indicated below:-
Sr. No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/223 · issued 15 Jan 2008. The plain-English explanation above is BankPulse’s own independent summary.
Align branch-level credit plans and priority sector lending targets with SBI's lead bank coordination.
📜 Compliance
Update internal records to reflect SBI as lead bank for Ariyalur district.
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.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (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), your first concrete step on “Ariyalur District Lead Bank Assigned to SBI” is: “Update internal records to reflect SBI as lead bank for Ariyalur district.” (RBI issued this 15 Jan 2008).
Circular: RBI/2007-2008/223 -- Ariyalur District Lead Bank Assigned to SBI
Issued: 15 Jan 2008
Action required: Update internal records to reflect SBI as lead bank for Ariyalur district.
Action required: Align branch-level credit plans and priority sector lending targets with SBI's lead bank coordination.
Action required: Ensure all reporting and compliance for Ariyalur district is directed to SBI's lead bank office.
Action required: No action needed for Perambalur district—continue with Indian Overseas Bank as lead bank.
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
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=4015&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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