Master Circular – Lead Bank Scheme

RBI Master Circular Link

Lead Bank Scheme Structure

The Reserve Bank of India has outlined the structure and implementation of the Lead Bank Scheme, which aims to improve banking penetration and financial inclusion.

The scheme consists of three tiers of fora:

  • Block Level Bankers’ Committee (BLBC): Focuses on block-level issues and coordination among banks.
  • District Consultative Committee (DCC): Comprises bankers, government officials, and other stakeholders to discuss district-level issues and credit plans.
  • State Level Bankers’ Committee (SLBC): Oversees state-level banking issues, credit plans, and policy implementation.

The DCC and SLBC meetings have specific agendas, including credit plans, banking penetration, and grievance redressal. The meetings are conducted quarterly and annually, respectively, with a standardized calendar.

The scheme’s implementation involves:

  • Preparation of credit plans: Based on potential linked credit plans (PLPs) to identify credit gaps and opportunities.
  • Monitoring performance: Regular review of credit plans and banking penetration to ensure effective implementation.

The scheme also emphasizes capacity building, training, and sensitization programs for bankers and government officials.

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Download: Master Circular – Lead Bank Scheme

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