RBI Draft Lead Bank Scheme Sets 60% C/D Ratio Aim
Why in the news
To raise credit flow and financial inclusion, the Reserve Bank of India proposed a 60% C/D benchmark for rural and semi-urban branches in draft Lead Bank Scheme changes.
Key facts
- Benchmark: 60% C/D ratio; flexible, not compulsory per branch or district.
- Outlets: prioritise CBS-enabled outlets in Tier-V centres; 25% minimum of new outlets in unbanked rural centres (URCs) of Tier-V and Tier-VI.
- Focus: unbanked villages above 5,000 population.
Monitoring bands
| C/D ratio | Action |
|---|---|
| 40% to 60% | DCC (District Consultative Committee) monitoring |
| Below 40% or falling credit | Special DCC sub-committee drafts improvement plans |
| Below 20% | Special category district: state improves infrastructure, banks lend more, close reporting |
Exam angle
- Scheme: Lead Bank Scheme; C/D ratio = share of deposits lent out.