What changed
RBI issued a Master Circular consolidating all Lead Bank Scheme guidelines issued up to March 31, 2021. It replaces multiple earlier circulars with a single reference document. The circular includes updated structures for Block Level Bankers’ Committees, DCC, and SLBC meetings.
What it means for you
Banks now have a unified framework for coordinating rural credit and financial inclusion under the Lead Bank Scheme. The circular reinforces the role of lead banks in driving priority sector lending and digital payments. It also emphasizes monitoring of credit-deposit ratios and banking penetration targets.
What you must do
- Review and implement the consolidated Lead Bank Scheme guidelines from the Master Circular.
- Ensure SLBC and DCC meetings follow the revised agenda and annual calendar.
- Align branch expansion and banking penetration plans with the roadmap for unbanked villages.
- Monitor and report CD ratio for rural and semi-urban areas as per the circular.
- Promote digital payments ecosystem in coordination with district authorities.
Who it affects
Lead banks and convenor banks of SLBC/UTLBC, All scheduled commercial banks operating in rural areas, District Consultative Committee members, Block Level Bankers’ Committee participants
What is the Lead Bank Scheme?
Introduced in December 1969, it coordinates banks and development agencies to enhance priority sector credit and rural development. Each district has a lead bank responsible for planning and monitoring credit flow.
Does this Master Circular introduce new rules?
No, it consolidates existing guidelines up to March 31, 2021. Banks should refer to this single document instead of multiple earlier circulars.
What are the key focus areas under the scheme?
Key areas include credit planning, banking penetration in unbanked villages, CD ratio monitoring, direct benefit transfer, and expanding digital payments.