RBI Proposes Revised Lead Bank Scheme Guidelines to Boost Financial Inclusion

• RBI proposes revised guidelines for the Lead Bank Scheme (LBS) to streamline operations and enhance effectiveness.
• LBS, introduced in 1969, coordinates banks, government, and developmental agencies for credit flow to priority sectors and financial inclusion.
• New guidelines aim to refine objectives, structure, membership, and roles of key functionaries, strengthening SLBC and Lead District Manager offices.
• RBI will designate a commercial bank as Lead Bank in each district to coordinate credit efforts and promote financial inclusion.
• A bottom-up approach for credit planning is envisaged, with block-wise/activity-wise potential estimation and monitoring of Credit Deposit Ratio.