What changed
RBI has assigned specific lead banks for 16 districts across five metropolitan areas—Delhi (11 districts), Mumbai (2), Chennai (1), Kolkata (1), and Hyderabad (1). The earlier lead bank responsibility for Delhi (Rural) assigned to SBI has been withdrawn, with SBI asked to support a smooth transition.
What it means for you
Banks designated as lead banks in these metro districts must now coordinate credit planning, financial inclusion, and government scheme implementation in those areas. This brings uniformity to the lead bank scheme across all districts, including urban metros, and may increase reporting and coordination demands for the assigned banks.
What you must do
- Verify your bank's lead bank assignment for the specific metro district and ensure immediate implementation of the scheme.
- Coordinate with district authorities and other banks to set up the lead bank mechanism as per RBI guidelines.
- Update BSR reporting with the newly allotted district working codes for the assigned districts.
- For SBI, facilitate a smooth handover of lead bank responsibilities in Delhi districts where the role has been withdrawn.
Who it affects
Canara Bank (New Delhi, Central Delhi, West Delhi), Oriental Bank of Commerce (North Delhi), Punjab National Bank (North West Delhi, North East Delhi, East Delhi), State Bank of India (South West Delhi, South Delhi, South East Delhi, Kolkata), Bank of Baroda (Shahdara), Bank of India (Mumbai City, Mumbai Suburb), Indian Overseas Bank (Chennai), State Bank of Hyderabad (Hyderabad), All lead banks in metropolitan districts
What is the lead bank scheme?
It is a RBI scheme where a designated bank in each district coordinates credit planning, financial inclusion, and government scheme implementation among all banks in that district.
Why were metro districts brought under this scheme now?
The 2013-14 Monetary Policy Statement decided to extend the lead bank scheme to all districts in metropolitan areas to ensure uniform coverage and better credit planning.
What should banks do with the new district working codes?
Banks must use these codes for BSR (Basic Statistical Returns) reporting to RBI for the respective districts.