Tamil Nadu


Welcome to SLBC, Tamilnadu

State Level Bankers’ Committee (SLBC) came into existence under Lead Bank Scheme as per RBI guidelines. SLBC is an inter-institutional forum at State level ensuring co-ordination between Government and Banks on matters pertaining to banking development.
Indian Overseas Bank is the Convenor Bank of SLBC, Tamilnadu.
SLBC facilitates effective implementation of development programmes in the areas of poverty alleviation, employment to un-employed, providing banking outlet in un-banked areas, training, financial literacy etc. The role of SLBC is reinforced by the High Level Committee constituted by RBI to review Lead Bank Scheme.

A Study Group, on the Organizational Framework for the Implementation of the Social Objectives, headed by Prof. D. R. Gadgil first recommended adoption of an 'Area Approach' for development of banking and credit structure in the rural areas.

A Committee of Bankers on Branch Expansion Programme of public sector banks appointed by Reserve Bank of India under the Chairmanship of Shri F. K. F.Nariman (Nariman Committee) endorsed the idea in November 1969. It also recommended that each bank can concentrate on certain districts where it should act as a 'Lead Bank'.

In terms of the above recommendations, Lead Bank Scheme was introduced by Reserve Bank in December, 1969.


Under the scheme, each district of the country has been allocated to a specified commercial bank which is called as the Lead Bank of the district. Metropolitan Cities of New Delhi, Mumbai, Kolkatta and Chennai were excluded from this arrangement.

  • Commercial Banks
  • RRBs
  • Co-operative Banks
  • Other Financial Institutions
  • RBI
  • Developmental Agencies and concerned Departments of the Government.
Service Area Approach (SAA) was introduced in 1989 under which villages were identified and assigned to bank branches based on their proximity and contiguity. Credit plans were prepared on an annual basis for the service area of each branch which involved co-ordination between the various developmental agencies and credit institutions.

Subsequently, the Advisory Committee on Flow of Credit to Agriculture and Allied Activities (Chairman Prof. V .S. Vyas, June 2004) recommended that the service area concept be made mandatory only for government sponsored schemes. In terms of the recommendations of the Committee, the restrictive provisions along with certain other aspects of service area were removed from December 2004, except for the government sponsored schemes.

High Level Committee on Lead Bank Scheme

In 2007 a High Level Committee was constituted under the chairpersonship of Smt. Usha Thorat, Deputy Governor, Reserve Bank of India to review the Lead Bank Scheme which was initially introduced in December 1969.

The High Level Committee, which submitted its final recommendations in August 2009, announced that “The overarching objective of Lead Bank Scheme shall be to enable banks and State Governments to work together for inclusive growth.” The Committee also advised Banks to focus attention on the urgent need for achieving 100% financial inclusion through penetration of banking services in the rural areas. RBI has accepted the recommendations of the High Level Committee and advised action areas to SLBC Convenors and Banks for implementation.