RBI Seeks Comments on Revised Lead Bank Scheme Guidelines

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  • Last Updated on 17 February, 2026

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Lead Bank Scheme guidelines

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.

  • 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.

Click Here To Read The Full Press Release

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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