Directors/Chief Executive Officers
All SLBC Convenor Banks/ Lead Banks
Revamp of Lead Bank Scheme -
Action Points for SLBC Convenor Banks/ Lead Banks
As you are aware, the Lead Bank
Scheme (LBS) was last reviewed by the “High Level Committee” under Smt Usha
Thorat, then Deputy Governor of Reserve Bank of India as the Chairperson in
2009. In view of changes that have taken place in the financial sector over
the years, Reserve Bank of India had constituted a “Committee of Executive
Directors” of the Bank to study the efficacy of the Scheme and suggest
measures for improvement. The Committee’s recommendations were discussed
with various stakeholders and based on their feedback, it has been decided
that the following ‘action points’ will be implemented by the SLBC Convener
Level Bankers’ Committee (SLBC) meetings should primarily focus on policy
issues with participation of only the senior functionaries of the banks/
Government Departments. All routine issues may be delegated to
sub-committee(s) of the SLBC. A Steering Sub-committee may be constituted
in the SLBC to deliberate on agenda proposals from different stakeholders
and finalise a compact agenda for the SLBC meetings. Typically, the
Sub-Committee could consist of SLBC Convenor, RBI & NABARD
representatives & senior State Government representative from the
concerned department, e.g. Finance/ Institutional Finance and two to three
banks having major presence. Other issue-specific sub-committees may be
constituted as required. A Revised Agenda for SLBC meetings is attached
as Annex I for implementation.
cases where the Managing Director/Chief Executive Officer/Executive
Director of the SLBC Convenor Bank is unable to attend SLBC Meetings, the
Regional Director of the RBI shall co-chair the meetings along with the
Additional Chief Secretary/Development Commissioner of the State concerned.
corporate business targets for branches, blocks, districts and states may
be aligned with the Annual Credit Plans (ACP) under the Lead Bank Scheme to
ensure better implementation. The Controlling Offices of the banks in each
state should synchronize their internal business plans with the ACP under
Lead Bank Scheme.
present, discussions at the Quarterly Meetings of the various LBS fora viz.
State Level Bankers’ Committee (SLBC), District level Consultative Committee
(DCC) and Block Level Bankers’ Committee (BLBC) primarily focuses on the
performance of banks in the disbursement of loans vis-a-vis the allocated
target under the Annual Credit Plan. The integrity & timeliness of the
data submitted by banks for the purpose has been an issue as a significant
portion of this data is manually compiled and entered into the Data
Management Systems of the SLBC Convener Banks. The extent to which this
data corresponds with the data present in the CBS of the respective banks also
varies significantly. Therefore, there is need of a standardized system to
be developed on the website maintained by each SLBC to enable uploading and
downloading of the data pertaining to the Block, District as well as the
State. The relevant data must also be directly downloadable from the CBS
and/ or MIS of the banks with a view to keeping manual intervention to a
minimal level in the process. The procedure relating to the envisaged
intervention in this area is given in Annex II. Necessary
modifications may be made on the SLBC websites and to the CBS & MIS
systems of all banks to implement the envisaged data flow mechanism.
strengthen the BLBC forum which operates at the base level of the Lead Bank
Scheme, it is necessary that all branch managers attend BLBC meetings and
enrich the discussions with their valuable inputs. Controlling Heads of
banks may also attend a few of the BLBC meetings selectively.
Employment Training Institutes (RSETIs) should be more actively involved
and monitored at various fora of LBS particularly at the DCC level. Focus
should be on development of skills to enhance the credit absorption
capacity in the area and renewing the training programmes towards
sustainable micro enterprises. RSETIs should design specific programmes for
each district/ block, keeping in view the skill mapping and the potential
of the region for necessary skill training and skill up gradation of the rural
youth in the district.
2. You are advised to initiate
necessary action for implementation of the ‘action points’ and also closely
monitor the progress/ follow up by banks in this regard.
3. Please keep the respective
Regional Office of the Reserve Bank of India informed of the action taken
in the matter.
4. A copy of this circular is
also being endorsed to the Chief Secretaries of all States.
(Gautam Prasad Borah)
Chief General Manager-in-Charge
I. Revised Agenda for SLBC
II. Management of Data Flow at
LBS Fora – Procedure
Agenda for SLBC Meetings
1. Review of financial inclusion
initiatives, expansion of banking network and Financial Literacy
of opening of banking outlets in unbanked villages, CBS-enabled banking
outlets at the unbanked rural centres (URCs)
of Operations of Business Correspondents – hurdles/issues involved
in increasing digital modes of payment in the State, provision of
continuous connectivity with sufficient bandwidth, resolving connectivity
issues/ connectivity options (Bharat Net, VSAT, etc.), installation of ATMs
and PoS machines and status of implementation of e-receipts and e-payments
in the State
of rollout of Direct Benefit Transfer in the State. Aadhaar seeding and
of inclusion of Financial Education in the School Curriculum, financial
literacy initiatives by banks (particularly digital financial literacy)
awareness about various schemes, subsidies, facilities e.g. crop insurance,
of efforts towards end to end projects involving all stakeholders in the
2. Review of credit disbursement
under ACP of the State, Priority Sector Lending,
on lending towards government sponsored schemes (DAY-NRLM, DAY-NULM, MUDRA,
Stand-Up India, PMEGP, etc.) and impact of these schemes
of credit to MSMEs and for affordable housing
loan, crop insurance under PMFBY
of Education Loans
under SHG-bank linkage
3. Doubling of Farmers’ Income
4. CD Ratio, Review of Districts
with CD Ratio below 40% and working of Special Sub-Committees of the DCC
5. Position of NPAs in respect
of schematic lending, Certificate Cases and Recovery of NPAs
6. Review of restructuring of
loans in natural calamity affected districts in the State, if any
7. Discussion on policy
initiatives of the Central/State Government/RBI (Industrial Policy, MSME
Policy, Agriculture Policy, Start-Up Policy, etc.), and expected
involvement of banks
8. Discussion on improving rural
infrastructure/ credit absorption capacity.
large project conceived by the State Government to help improve C-D Ratio.
the scope of state-specific potential growth areas and the way forward –
choosing partner banks.
on findings of region-focused studies, if any, and implementing the
of gaps in rural and agriculture infrastructure which need financing (rural
godowns, solar power, agro processing, horticulture, allied activities,
of Model Land Leasing Act 2016 (exploring possibility)
9. Efforts towards skill
development on mission mode partnering with KVK, Horticulture Mission,
National Skill Development Corporation, ASCI, etc. including a review of functioning
10. Steps taken for improving
land record, progress in digitization of land records and seamless loan
11. Sharing of success stories
and new initiatives at the district level that can be replicated in other
districts or across the State
12. Discussion on Market
Intelligence Issues e.g.
Schemes/ Illegal Activities of Unincorporated Bodies/ Firms/ Companies
Soliciting Deposits from the Public
Related Cyber Frauds, phishing, etc.
of usurious activities by lending entities in the area, cases of over
related frauds by borrower groups etc.
13. Issues remaining unresolved
at DCC/DLRC meeting
14. Timely submission of data by
bank, adhering the schedule of SLBC meeting
15. Any other item, with the
permission of the Chair.
of Data Flow at LBS Fora – Procedure
i. Each bank’s CBS should have a
provision to generate a report pertaining to all LBS related data/ tables
to Excel. This data should have information pertaining to all the branches
operating in the state including fields/ columns for District & Block
name. Access to Download & Export this data from bank CBS should be
given to the Controlling Offices of the Banks who would be solely
responsible for the process of ‘Data Feeding’ for all districts/ blocks
within their jurisdiction.
ii. The ‘Data Feeding’ process
is the process of uploading this Excel file (downloaded in step (i) above)
on the SLBC websites. SLBC Websites should have a provision to ‘Import/
Upload’ all the data present in the Excel Sheet on the database of the SLBC
Website. This would obviate any manual ‘data entry’ at the SLBC/
Controlling Office level.
iii. To facilitate the above
functionality, each SLBC Convenor Bank would have to add this ‘Import/
Upload’ functionality to their SLBC website along with the requisite
capabilities at the back-end.
iv. The SLBC website would,
thus, effectively work as a data aggregation platform. Further, data
analysis capabilities could also be added to the SLBC websites depending on
the available resources.
v. The SLBC websites should
provide access to LDMs to download district and block specific data
directly from this website thus ensuring integrity and timely availability
vi. There could still be some
data pertaining to State Government Schemes/ other data that is not
available on the CBS or MIS of the banks. This would have to be collated at
the Controlling Office level as is done now. At the SLBC website,
functionalities could be provided to enter this data too. This could then
be downloaded by the LDMs for district/ block level reports. Banks may also
add Open Format fields like ‘text boxes’ for data or information that is
special or is entered/ used once in a while.
vii. Such a system ensures that
LDMs & SLBC Convenor Banks have to do zero or minimal data entry/
feeding and all data is entered by a single ‘custodian of data’ which is
the Controlling Office of each Bank. Any information to be provided by
Government extension agencies could also be similarly uploaded.