RBI to revise Lead Bank Scheme to improve credit flow to priority sectors at district level

The Reserve Bank of India (RBI) on Friday (February 13, 2026) issued the draft circular on the revised guidelines for the Lead Bank Scheme (LBS) for public comments.

“The revised guidelines aim to finetune the objectives of the Scheme; the structure, membership and agenda of various fora under the Scheme; clear delineation of roles and responsibilities of key functionaries; and provisions to further strengthen the State Level Bankers’ Committee and Lead District Manager offices, among others,” the RBI said.  The last date for submission of comments is March 6, 2026

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The objective is to streamline operational aspects and further enhance the effectiveness of the programme, which was first introduced in 1969 for coordinating development activities at the district level.

LBS aims at coordinating the activities of banks, government and other developmental agencies through fora established under the scheme to enhance the flow of credit to priority sectors for inclusive growth and deepening financial inclusion.

The RBI will designate a commercial bank as Lead Bank in each district, to coordinate the efforts of the credit institutions, Government, and other stakeholders to improve credit flow to the priority sectors and promote financial inclusion in the district, according to the draft circular.

SLBC Convenor Banks would coordinate the activities of all banks in the State, and regularly discuss with State government officials the operational problems in lending, while extending necessary support for banking development and to achieve the objective of greater financial inclusion, it added.

The scheme will function through a three-tier structure in each State / UT, with Block Level Banker’s Committee (BLBC) at the base level, District Consultative Committee (DCC) and District Level Review Committee (DLRC) at the intermediate level, and SLBC / UTLBC at the apex level.  Each of these fora will broadly comprise of banks, government agencies and other stakeholders.