Lead Bank Scheme

The RBI released draft revised guidelines to strengthen district-level coordination under the Lead Bank Scheme. The move seeks to enhance credit flow to priority sectors and improve rural financial inclusion.

Lead Bank Scheme:

Dimension	Key Details
Launch	Launched by RBI in 1969 based on recommendations of Gadgil Committee and endorsed by Nariman Committee
Objective	Coordinates banks and development agencies to enhance credit flow to priority sectors and rural areas
Basic Unit	District is the basic unit for credit planning and all districts in India are covered
State Level Mechanism	State Level Bankers’ Committee acts as the highest forum for state-level coordination
District Level Mechanism	District Consultative Committee and District Level Review Committee coordinate district credit planning
Lead District Manager	Responsible for day-to-day coordination and implementation in the district
Block Level Forum	Block Level Bankers’ Committee provides ground-level coordination
Credit Planning	Provides District Credit Plan based on deposit potential and credit gaps
Target	Benchmark of 60% Credit-Deposit ratio in rural and semi-urban branches and 100% financial inclusion
Beneficiaries	Rural and semi-urban populations, priority sector borrowers, MSMEs, SHGs and farmers