Reserve Bank of India issued a revised circular on the Lead Bank Scheme through Press Release 2026-2027/502

Reserve Bank of India issued a revised circular on the Lead Bank Scheme through Press Release 2026-2027/502

¨     Reserve Bank of India (RBI) issued a revised circular on the Lead Bank Scheme (LBS) on 19 June 2026 through Press Release 2026-2027/502.

¨     The revised circular supersedes all earlier instructions on the Lead Bank Scheme.

¨     It introduces updated guidelines for district-level credit planning, committee meetings, and financial inclusion activities.

¨     The Lead Bank Scheme (LBS) is a district-level banking coordination framework for credit planning in India.

¨     Under the scheme, one bank is designated as the Lead Bank for each district.

¨     The scheme links branch-level banking activities with district and state-level development planning.

¨     Under the revised framework, every Lead Bank must appoint one exclusive Lead District Manager (LDM) for each district.

¨     Multi-district assignments for an LDM are permitted only in exceptional cases.

¨     Every Lead District Manager's office must have dedicated staff, IT infrastructure, vehicles, and a separate budget.

¨     The revised guidelines recognize the Block Level Bankers' Committee (BLBC) as the foundation of the three-tier credit planning system.

¨     Block plans will feed into district plans, which will then feed into state plans through the District Consultative Committee (DCC), District Level Review Committee (DLRC), and State Level Bankers' Committee (SLBC).

¨     Uniform timelines have been prescribed for meetings of BLBC, DCC, DLRC, and SLBC.

¨     Agenda papers, meeting minutes, and Action Taken Reports (ATRs) must be prepared and submitted within prescribed timelines.

¨ The District Consultative Committee (DCC) is responsible for coordination and implementation of banking and credit-related activities at the district level.

¨  The District Level Review Committee (DLRC) reviews credit flow in the district and considers feedback from Members of Parliament (MPs) and Members of the Legislative Assembly (MLAs).