What changed
RBI issued a circular on February 26, 2010, directing SLBC convenor banks to implement recommendations from a High-Level Committee that reviewed the Lead Bank Scheme. The committee affirmed the scheme's utility but called for its strengthening to address changes over four decades, with sharper focus on financial inclusion. Key changes include mandatory quarterly SLBC meetings co-chaired by state officials, formation of sub-committees, creation of SLBC websites, annual sensitization workshops, and inviting academicians and NGOs as special invitees.
What it means for you
Banks must now operationalize these recommendations to improve coordination with state governments for inclusive growth. SLBC convenor banks bear primary responsibility for driving implementation at state level, while lead banks and commercial banks handle district-level actions. Strengthened SLBCs with sub-committees and external expertise should enhance credit delivery to agriculture and MSME sectors, and deepen financial inclusion through NGO and corporate partnerships.
What you must do
- Hold quarterly SLBC meetings chaired by your CMD and co-chaired by the state's Additional Chief Secretary or Development Commissioner.
- Form sub-committees to address specific financial inclusion issues and devise solutions for SLBC consideration.
- Strengthen your SLBC secretariat, create a dedicated website, and organize a full-day sensitization workshop each April/May.
- Identify and invite academicians, researchers, NGOs, and corporate CSR entities as special invitees to SLBC/DCC meetings.
- Monitor progress of lead banks and commercial banks in implementing the action points from Annex I and II.
Who it affects
SLBC convenor banks, Lead banks at district level, Commercial banks operating in states/districts, State governments (Additional Chief Secretary/Development Commissioner), NGOs and corporate CSR entities engaged in financial inclusion
What is the overarching objective of the Lead Bank Scheme as per this circular?
The scheme aims to enable banks and state governments to work together for inclusive growth, with a renewed focus on financial inclusion and recent banking sector developments.
How often should SLBC meetings be held and who should chair them?
SLBC meetings must be held quarterly, chaired by the CMD of the convenor bank and co-chaired by the state's Additional Chief Secretary or Development Commissioner.
What role do academicians and NGOs play under the strengthened scheme?
Academicians and researchers can be invited as special invitees to add value to discussions and assist in product formulation. NGOs and corporate CSR entities are expected to provide 'credit plus' services to low-income households.