Press Release: 2025-2026/2105, Dated: 13.02.2026
The Reserve Bank of India (RBI) has invited public comments on a draft circular proposing revised guidelines for the Lead Bank Scheme (LBS).
The proposed revisions aim to strengthen the effectiveness of the Scheme and improve coordination among stakeholders involved in financial inclusion and credit planning.
1. Objective of the Proposed Revisions
The draft circular seeks to:
- Refine and update the objectives of the Lead Bank Scheme
- Enhance clarity in institutional structure and functioning
- Strengthen coordination between banks, State Governments, and other stakeholders
- Improve monitoring and implementation of financial inclusion initiatives
2. Clarification of Structure and Institutional Framework
The draft guidelines propose clearer articulation of:
- Structure and composition of various committees and forums under the LBS
- Membership norms and participation of stakeholders
- Standardised agenda and meeting processes for effective functioning
This is intended to ensure uniformity and efficiency in implementation across states and districts.
3. Defined Roles and Responsibilities
The draft circular clearly delineates the roles and responsibilities of key functionaries under the Scheme, including:
- Lead Banks
- State Level Bankers’ Committees (SLBCs)
- Lead District Managers (LDMs)
- Participating banks and financial institutions
This clarity is expected to enhance accountability and coordination in credit planning and financial inclusion efforts.
4. Strengthening SLBCs and Lead District Manager Offices
The draft proposes specific measures to improve the functioning of:
4.1 State Level Bankers’ Committees (SLBCs)
- Strengthened coordination mechanisms
- More focused review of credit deployment and financial inclusion targets
- Improved monitoring and follow-up processes
4.2 Lead District Manager (LDM) Offices
- Enhanced operational support
- Clearer functional responsibilities
- Improved monitoring of district-level banking activities
5. Public Consultation
RBI has invited comments and suggestions from stakeholders and the public on the draft guidelines.
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Last date for submission of comments – 6 March 2026
Feedback received will be considered before finalisation of the revised framework.
6. Key Takeaway
The proposed revision of the Lead Bank Scheme guidelines seeks to modernise and strengthen institutional coordination for credit planning and financial inclusion by clarifying roles, improving governance structures, and enhancing the functioning of SLBCs and LDM offices.
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