RBI revamps Lead Bank Scheme, strengthens district credit planning
Mumbai, Jun 19, 2026
The revised framework formalises block-level credit planning, strengthens Lead District Manager offices and sharpens accountability across banking committees
The Reserve Bank of India (RBI) on Friday issued final norms on the Lead Bank Scheme (LBS), strengthening district-level banking coordination, sharpening accountability and formalising credit planning at the block level to improve the flow of credit to priority sectors and deepen financial inclusion.
The revised guidelines replace all earlier instructions governing the scheme following a comprehensive review of the framework, under which designated lead banks coordinate with banks, government departments and development agencies at the district level.
Among the major changes, the RBI has mandated that every lead bank appoint a Lead District Manager (LDM) exclusively for each district under its charge. Banks have been advised to assign only one district to one LDM, with responsibility for multiple districts permitted only in exceptional cases. The central bank has also directed banks to strengthen LDM offices with dedicated staff, IT infrastructure, vehicles and separate budgets.
The revised framework also formalises the role of the Block Level Bankers' Committee (BLBC) as the foundation of the credit-planning process. The committee will prepare and review block credit plans, which will feed into district credit plans and subsequently state-level credit plans.
To improve accountability, the RBI has prescribed uniform timelines for meetings of Block Level Bankers' Committees, District Consultative Committees (DCCs), District Level Review Committees (DLRCs) and State Level Bankers' Committees (SLBCs). It has also directed Lead District Managers and SLBC convenors to establish robust monitoring systems to ensure decisions taken at these meetings are implemented within defined timelines.
The central bank has also drawn a clearer distinction between the roles of the DCC and DLRC. While the DCC will function as the district-level coordination and implementation forum, the DLRC will focus on reviewing credit flow and providing a platform for Members of Parliament, Members of Legislative Assemblies and other public representatives to provide feedback.
At the state level, the RBI has asked SLBCs to focus on policy and strategic issues relating to priority sector lending and financial inclusion, while constituting dedicated sub-committees on agriculture, MSMEs, financial inclusion and digital payments.
The revised framework also permits virtual participation in meetings where physical attendance is difficult and introduces stricter timelines for circulating agenda papers, recording minutes and tracking action taken.
[The Business Standard]
