What changed
RBI issued a Master Circular consolidating all existing Lead Bank Scheme guidelines issued up to March 31, 2024. No new policy changes were introduced; this is a compilation of previous instructions into one document.
What it means for you
Banks now have a single reference for all LBS guidelines, simplifying compliance and training. The circular reinforces the role of lead banks in coordinating credit flow and financial inclusion. It emphasizes standardized SLBC websites and data flow mechanisms for better monitoring.
What you must do
- Review the Master Circular and update internal LBS procedures accordingly.
- Ensure SLBC/UTLBC convenor banks maintain standardized websites with required data.
- Align credit planning and monitoring with the revised data flow mechanism for LBS meetings.
- Continue implementing roadmaps for banking services in unbanked villages and branches in villages over 5000 population.
Who it affects
SLBC/UTLBC convenor banks, Lead banks in districts, All scheduled commercial banks operating in rural and semi-urban areas, District Consultative Committees and Block Level Bankers' Committees
What is the Lead Bank Scheme?
Introduced in December 1969 based on the Gadgil Study Group and Nariman Committee recommendations, it assigns a lead bank to each district to coordinate credit institutions and government for rural development and priority sector lending.
Does this Master Circular introduce new rules?
No, it consolidates all existing guidelines on the Lead Bank Scheme issued up to March 31, 2024. Banks should refer to this circular for current instructions.
What are the key forums under the Lead Bank Scheme?
The key forums are Block Level Bankers' Committee, District Consultative Committee (DCC), District Level Review Committee (DLRC), and State Level Bankers' Committee (SLBC).