The Reserve Bank of India (RBI) has issued revised guidelines for the Lead Bank Scheme (LBS), aimed at strengthening district-level credit planning, improving coordination among stakeholders and deepening financial inclusion across the country.

The central bank said it had undertaken a "comprehensive review" of the scheme and issued revised guidelines after examining public feedback received on the draft framework released earlier this year.

"The revised Circular on the Lead Bank Scheme (LBS) has been issued today," RBI said in a release issued on June 19. The central bank added that "feedback received on the draft circular has been examined and necessary modifications have been suitably incorporated in the final guidelines."

According to the revised circular, the Lead Bank Scheme aims at coordinating the activities of banks, governments and development agencies to boost credit flow and expand access to financial services.

The RBI said the scheme seeks to achieve two key objectives: "enhancing flow of credit to priority sectors for achieving inclusive growth" and "deepening financial inclusion through improved access and usage of financial services.

"The revised framework gives a clearer structure to the scheme and defines the responsibilities of Lead Banks, Lead District Managers (LDMs), State Level Bankers' Committees (SLBCs) and other stakeholders.

The RBI said a Lead Bank in every district will coordinate efforts of banks, government agencies and other institutions "to improve credit flow to the priority sectors and promote financial inclusion in the district.

"Under the new guidelines, every Lead Bank will appoint a Lead District Manager to "exclusively oversee and coordinate the implementation" of the scheme in the district.

The RBI has also introduced a three-tier structure comprising Block Level Bankers' Committees, District Consultative Committees and State Level Bankers' Committees to strengthen coordination between banks and government agencies.

The central bank said district-level committees will prepare and review District Credit Plans and help resolve operational issues related to implementation.

The revised guidelines supersede earlier instructions issued by the RBI on the scheme. "A comprehensive review of the LBS has been undertaken and the revised guidelines on the subject are enclosed. These supersede all earlier instructions issued by the Reserve Bank on the subject," the RBI said in the circular.

The Lead Bank Scheme was introduced by the RBI in December 1969 to facilitate coordination among banks and development agencies and promote the flow of credit to priority sectors and rural areas.

The RBI said the scheme has played an important role in supporting branch expansion, deposit mobilisation and lending in rural and semi-urban regions.

Published on June 22, 2026