RBI Releases Draft Revised Guidelines for Lead Bank Scheme

The Reserve Bank of India released the draft of revised guidelines for the Lead Bank Scheme on February 16, 2026, following its earlier announcement on February 06, 2026. The update was introduced as part of the central bank’s Statement on Developmental and Regulatory Policies.

The draft circular aims to refine the operational structure of the Scheme by clarifying roles, strengthening institutional mechanisms, and improving coordination across stakeholders. Public comments have been invited to ensure wider participation in shaping the final framework.

RBI Issues Draft Guidelines as Part of Its Regulatory Updates

The Reserve Bank had previously indicated that updated instructions would be released shortly to enhance the functioning of the Lead Bank Scheme. This announcement was included in the Statement on Developmental and Regulatory Policies dated February 06, 2026.

The draft circular issued on February 16, 2026, outlines several proposed amendments designed to streamline operational processes under the Scheme. The central bank has opened the document for public comments to gather suggestions from all concerned stakeholders.

Objectives And Structural Enhancements Proposed Under the Scheme

The revised guidelines aim to finetune the objectives of the Lead Bank Scheme to ensure clarity and more effective implementation. They propose changes to the structure, membership, and procedures of key fora operating under the Scheme.

The draft also introduces clearer delineation of roles and responsibilities for key functionaries involved in its execution. The document further recommends strengthening both the State Level Bankers' Committee and the Lead District Manager offices.

Operational Roles and Strengthening of Institutional Mechanisms

One of the key focuses of the draft circular is the clearer assignment of operational duties across various layers of the Scheme. The proposal includes enhanced guidance for Lead District Managers to support district-level financial inclusion and credit planning.

It also offers provisions to reinforce the functioning of State Level Bankers' Committees to ensure more effective inter‑institutional coordination. These measures are meant to address administrative challenges and improve the Scheme’s overall effectiveness.

Public Feedback Process and Submission Timeline

The Reserve Bank has requested comments and feedback on the draft guidelines through email submissions. Contributors are required to mention ‘Feedback on the Draft Circular on Lead Bank Scheme’ in the subject line while submitting their responses.

The public consultation process remains open until March 06, 2026, giving stakeholders a defined timeline to share their views. After reviewing the submissions, the central bank is expected to finalise the updated guidelines for implementation.

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Conclusion

The issuance of the draft revised guidelines marks a key step in the Reserve Bank’s efforts to strengthen the Lead Bank Scheme. The proposals aim to refine operational roles, improve structural clarity, and reinforce institutional mechanisms at the state and district levels.

Public participation through the feedback process is expected to support the development of a more effective framework. The final guidelines will be released after the central bank completes its review of the comments received.

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