RBI Assigns Bank of Baroda as Lead Bank Responsibility for “Vav-Tharad”

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RBI Assigns Bank of Baroda as Lead Bank Responsibility for “Vav-Tharad”

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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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied