Circular No. RBI/2025-26/155 FIDD.CO.LBS.BC.No.09/02.08.001/2025-26; dated: 18.12.2025
1. Background – Creation of a New District
The Government of Gujarat, through Gazette Notification No. GHM/2025/210/M/RD/RCO/e-file/15/2025/5360/L1 dated September 24, 2025, formally notified the creation of a new district named Vav-Tharad.
The formation of the new district necessitated corresponding administrative and banking arrangements, including the assignment of Lead Bank responsibility under the Lead Bank Scheme.
2. RBI’s Decision on Lead Bank Assignment
Following the creation of the new district, the Reserve Bank of India (RBI) has assigned Bank of Baroda as the Lead Bank for the newly formed Vav-Tharad district
This designation entrusts Bank of Baroda with the responsibility of coordinating banking and credit-related initiatives in the district.
3. Role of the Lead Bank
As the Lead Bank for Vav-Tharad district, Bank of Baroda will be responsible for:
- Coordinating implementation of government-sponsored schemes
- Promoting financial inclusion initiatives
- Facilitating district-level credit planning
- Convening and supporting District Consultative Committee (DCC) and related meetings
- Acting as the nodal bank for interaction with district administration and other banks
4. No Change for Other Districts in Gujarat
The RBI has also clarified explicitly that:
- There is no change in the Lead Bank responsibilities for any other districts in the State of Gujarat
- Existing Lead Bank arrangements for all other districts continue unchanged
This clarification ensures continuity and avoids operational ambiguity for banks operating in the state.
5. Regulatory Intent
The assignment seeks to:
- Ensure smooth banking administration in the newly created district
- Maintain alignment between administrative reorganisation and banking infrastructure
- Support credit delivery, financial inclusion, and local economic development in Vav-Tharad
- Provide clarity to banks and stakeholders under the Lead Bank Scheme
6. Key Takeaways
- Vav-Tharad is a newly created district in Gujarat
- Bank of Baroda is designated as the Lead Bank for the district
- No changes have been made to Lead Bank assignments in other districts of Gujarat
- Banks should update internal jurisdictional and coordination records accordingly
Click Here To Read The Full Circular
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