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RBI GUIDELINES click here
RBI notifies implementation of the recommendations of high Level Committee to Review Lead Bank Scheme
Following are the major recommendations:
I. BANKING PENETRATION
Lead Banks are advised to focus attention on the urgent need for achieving 100% financial inclusion through penetration of banking services in the rural areas. Such banking services may not necessarily be extended through a brick and mortar branch but can be provided through any of the various forms of ICT- based models, including through BCs. However, ICT connectivity should not be an issue of consideration for not pursuing financial inclusion by commercial banks/RRBs. In this connection you may be guided by our Circular RPCD.CO.LBS.HLC.BC.No.43/ 02.19.10/2009-10 dated November 27, 2009.
II. GREATER ROLE FOR PRIVATE SECTOR BANKS
The private sector banks should involve themselves more actively by bringing in their expertise in strategic planning and leveraging on Information Technology. The Lead Banks, on their part, should also ensure that private sector banks are more closely involved in the LBS, both while drawing up and in implementing the ACP.
III. PREPARATION OF DISTRICT CREDIT PLAN/ANNUAL CREDIT PLAN
i) Preparation of Potential Linked Plan (PLP) by NABARD may be advanced to be completed by August every year so that the State Governments may factor in the projection made by the PLP in the state/district plan. While preparing the PLP, the District Development Managers (DDMs) of NABARD along with the Lead District Managers (LDMs) of the Lead Banks may discuss with the concerned development departments of the State Governments and the banks having significant presence in the districts. The District Credit Plan/Annual Credit Plan may be prepared by the LDMs taking into account the PLP for agriculture and allied activities. For other sectors (i.e. other than agriculture and allied activities), the LDM should work out a similar action plan based on the commitments made by the State Government, other stakeholders and banks.
ii) The Zonal/controlling offices of banks, while finalizing their business plans for the year, should take into account the commitments made in the ACP which should be ready well in time before the performance budgets are finalized. It may be ensured that there is little or no divergence between the PLP and the DCP/ACP.
IV. QUARTERLY PUBLIC MEETING AND GRIEVANCE REDRESSAL
The Lead District Manager may convene a quarterly public meeting at various locations in the district, in coordination with the Reserve Bank, banks having presence in the area and other stakeholders to generate awareness of the various banking policies and regulations relating to the common person, obtain feedback from the public and provide grievance redressal to the extent possible at such meetings or facilitate approaching the appropriate machinery for such redressal.
V. FINANCIAL LITERACY & CREDIT COUNSELLING
i) Each Lead Bank is expected to open a Financial Literacy and Credit Counselling Centre (FLCC) in every district where it has lead responsibility by following the recent guidelines issued by RBI in this regard. Suitable grant may be considered out of the Financial Inclusion Fund (FIF) to set up such centres in districts identified as being financially excluded by the Committee on Financial Inclusion.
ii) The State Government machinery may support the efforts made by banks for financial literacy. Towards this, State Governments may proactively provide assistance of the government machinery, especially at the grass root level such as schools, panchayats, etc., for this purpose.
All other instructions issued prior to this circular will continue to remain operative /effective.
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