What changed
The Government of Rajasthan created 19 new districts via a gazette notification on August 5, 2023. RBI has now assigned a lead bank to each new district, with specific banks like Punjab National Bank, State Bank of India, Bank of Baroda, UCO Bank, and ICICI Bank taking charge. Lead banks for other districts in Rajasthan remain unchanged.
What it means for you
Banks assigned as lead banks for these new districts must now coordinate banking services, financial inclusion, and government scheme implementation in those areas. This may require setting up new branches or expanding operations. Other banks operating in these districts should align with the lead bank's plans.
What you must do
- If your bank is assigned as lead bank for a new district, prepare to take on coordination and reporting responsibilities.
- Review the list of new districts and ensure your bank's branch network aligns with the lead bank's role.
- Collaborate with district authorities and other banks to ensure smooth financial inclusion and credit delivery.
- Update internal records and regulatory filings to reflect the new district boundaries and lead bank assignments.
Who it affects
Lead banks assigned to new districts: PNB, SBI, BoB, UCO Bank, ICICI Bank, All banks operating in Rajasthan's new districts, Rajasthan state government and district administrations, Customers and businesses in the newly formed districts
Which banks have been assigned as lead banks for the new districts?
Punjab National Bank gets 6 districts, State Bank of India 4, Bank of Baroda 4, UCO Bank 3, and ICICI Bank 2. Specific districts are listed in the RBI circular.
Do existing lead bank assignments in Rajasthan change?
No. The circular explicitly states there is no change in lead banks for other districts in Rajasthan.
When did these new districts become effective?
The Rajasthan government's notification took effect from August 7, 2023. RBI's lead bank assignment was issued on November 10, 2023.