UPSC Prelims Practice Questions — RBI issues draft circular on revised guidelines for lead bank scheme

Question 1

The Lead Bank Scheme, whose revised guidelines were released as a draft circular by the RBI in February 2026, was originally introduced in 1969 on the recommendations of which one of the following committees?

Accepted Answer

F.K.F. Nariman Committee

Answer

Narasimham Committee

Answer

Rangarajan Committee

Answer

Kelkar Committee

Question 2

Under the institutional architecture of the Lead Bank Scheme, which one of the following is the apex (highest) coordination forum at the State level?

Accepted Answer

State Level Bankers' Committee (SLBC)

Answer

District Consultative Committee (DCC)

Answer

District Level Review Committee (DLRC)

Answer

Block Level Bankers' Committee (BLBC)

Question 3

As per the RBI's February 2026 draft circular on revised guidelines for the Lead Bank Scheme, what is the indicative benchmark for the Credit-Deposit (CD) ratio prescribed for rural and semi-urban branches of banks on an all-India basis?

Accepted Answer

60 per cent

Answer

40 per cent

Answer

50 per cent

Answer

75 per cent

Question 4

With reference to the RBI's draft circular of February 2026 on the revised Lead Bank Scheme, as compared with the existing framework, consider the following statements:
1. The draft proposes strengthening of the State Level Bankers' Committee (SLBC) and Lead District Manager (LDM) offices with a clearer delineation of roles of key functionaries.
2. The draft, for the first time, transfers the chairmanship of the SLBC from a commercial bank to the State Finance Secretary.
3. The draft prescribes an indicative Credit-Deposit ratio benchmark of 60 per cent for rural and semi-urban branches on an all-India basis.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

UPSC Prelims Practice Questions — RBI issues draft circular on revised guidelines for lead bank scheme

Q1. The Lead Bank Scheme, whose revised guidelines were released as a draft circular by the RBI in February 2026, was originally introduced in 1969 on the recommendations of which one of the following committees?

Q2. Under the institutional architecture of the Lead Bank Scheme, which one of the following is the apex (highest) coordination forum at the State level?

Q3. As per the RBI's February 2026 draft circular on revised guidelines for the Lead Bank Scheme, what is the indicative benchmark for the Credit-Deposit (CD) ratio prescribed for rural and semi-urban branches of banks on an all-India basis?