Notification Detail :
RBI/2017-2018/155
FIDD.CO.LBS.BC.No.19/02.01.001/2017-18
April 6, 2018
The Chairmen/Managing Directors/Chief Executive Officers
All SLBC Convenor Banks/ Lead Banks
Madam/Dear Sir,
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 Banks/Lead Banks.
State 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.
In 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.
The 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.
At 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.
To 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.
Rural Self 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.
Yours faithfully,
(Gautam Prasad Borah)
Chief General Manager-in-Charge
Encl.:
I. Revised Agenda for SLBC Meetings
II. Management of Data Flow at LBS Fora – Procedure
View Attachment
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