1. The State Level Bankers’ Committee (SLBC) has been constituted in April 1977, as an apex  inter-institutional forum to create adequate coordination machinery in all States, on a uniform basis for development of the State. SLBC is Chaired by the Chairman & Managing Director (CMD) of the convenor bank/Executive Director of the convenor bank.   It comprises representatives of commercial banks, RRBs, State Cooperative Banks, RBI, NABARD, heads of Government departments including representatives from National Commission for Scheduled Castes/Tribes, National Horticulture Board, Khadi & Village Industries Commission etc. and representatives of  financial  institutions  operating  in  a  State,  who  come  together  and  sort  out coordination problems at the policy implementation level.  Representatives of various organizations from different sectors of the economy like retail traders, exporters and farmers’ union etc. are special invitees in SLBC meetings for discussing their specific problems, if any. The SLBC meetings are held on quarterly basis. The responsibility of convening the meetings of the SLBC would be that of the SLBC convenor bank of the State.


2. Recognising that SLBCs, primarily as a committee of bankers at State level play an important role in the development of the State, illustrative guidelines on the conduct of State Level Bankers Committee (SLBC) meetings have been issued.

1. The SLBC meetings are required to be held regularly at quarterly intervals.  SLBC is Chaired by the Chairman & Managing Director (CMD) of the convenor bank/Executive Director of the convenor bank   and co-chaired by Additional Chief Secretary or Development Commissioner of the State concerned.   High Level of participation in SLBC/UTLBC meetings ensure an effective and desired outcome with meaningful discussion on issues of public policy of both the Government of India and Reserve Bank of India.


2. The Chief Minister/Finance Minister and senior level officers of the State/RBI (of the rank of Deputy Governor / Executive Director) may be invited to attend the SLBC meetings.  Further, the State Chief Ministers are encouraged to attend at least one SLBC meeting in a year.


3. In view of the large membership of the SLBC, it would be desirable for the SLBC to constitute Steering Sub Committee/Sub-Committees for specific tasks like agriculture,  micro, small/medium  industries/enterprises,  handloom  finance,  export promotion and financial inclusion etc. The sub committees may examine the specific issues in-depth and devise solutions/recommendations for adoption by the full committee. It is expected to meet more frequently than the SLBC. The composition of the sub-committee and subjects/ specific issues impeding/enabling financial inclusion to be deliberated upon, may vary from State to State depending on the specific problems/issues faced by the States.


4. The secretariat/offices of SLBC should be sufficiently strengthened to enable the SLBC convenor bank to effectively discharge its functions.


5. The various fora at lower levels may give adequate feedback to the SLBC on issues that need to be discussed on a wider platform.


6. Several institutions and academicians are engaged in research and studies etc. that have implications for sustainable development in agriculture and MSME sector. Engaging with such research institutions and academicians would be useful in bringing in new ideas for furthering the objectives of the Lead Bank Scheme. The SLBCs may, therefore, identify such academicians and researchers and invite them as 'special invitees' to attend SLBC meetings occasionally both for adding value to the discussion and also associate them with studies for product formulation appropriate to the State. Other 'special invitees' may be invited to attend SLBC meetings depending on the agenda items/issues to be discussed in the meetings.


7. The activities of NGOs in facilitating and channeling credit to the low income households are expected to increase in the coming years. Several corporate houses are also engaged in corporate social responsibility activities for sustainable development. Bank's linkage with such NGOs/Corporate houses operating in the area to ensure that the NGOs/corporates provide the necessary 'credit plus' services can help leverage bank credit for inclusive growth. Success stories could be presented in SLBC meetings to serve as models that could be replicated.

While all SLBCs are expected to address the problems particular to the concerned states, some of the important areas which are common to all States which the SLBCs should invariably discuss in the fora are as under:

1. Financial  inclusion  -  monitoring  mechanism  to  periodically  assess  and evaluate the progress made in achieving the road map to provide banking services within the time frame prescribed. Compile and consolidate State wise Financial inclusion Plan for the three year period in the format LBS-MIS-IV. The progress under FIP should be reviewed in the format LBS-MIS-V for quarterly submission to Reserve Bank.


2. The specific issues inhibiting and enabling IT enabled financial inclusion.


3. Issues to facilitate 'enablers' and remove/minimise 'impeders' for banking development for inclusive growth


4. Monitoring initiatives for providing 'Credit Plus' activities by banks and State Governments such as setting up of Financial Literacy   Centres (FLCs) and RSETI type training  institutes  for  providing  skills  and  capacity  building  to manage businesses


5. Scaling up financial literacy efforts to achieve financial inclusion.


6. Review of performance of banks under Annual Credit Plan (ACP) of the State


7. Regional  imbalances  in  deployment  of  credit  to  various  sectors  of  the economy


8. Credit - Deposit Ratio of the State


9. Flow of credit to priority sector and weaker sections of the society


10. Assistance under Government sponsored schemes


11. Grant of educational loans


12. Progress under SHG - bank linkage


13. Discuss the problems faced by MSME sector


14. Steps taken for improving land record and recovery mechanism


15.  Timely submission of data by banks


16. Review of relief measures (in case of natural calamities wherever applicable)

and
17. Issues remaining unresolved at the DCC/DLRC meetings.

The above list is illustrative and not exhaustive. The SLBC convenor banks may include any other agenda item considered necessary.

1. Over the years, the focus of Lead Bank Scheme has shifted to inclusive growth and financial inclusion. The use of Information Technology (IT) and intermediaries has enabled banks to increase outreach, scale and depth of banking services at affordable cost.


2. SLBC convenor banks / lead banks are advised to focus attention on the 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 excuse for not pursuing financial inclusion by commercial banks/RRBs.


3. SLBC convenor banks should take up with the State Governments   impeders such as issues of road/digital connectivity, conducive law and order situation, uninterrupted power supply and adequate security etc. for ensuring banking expansion at all centres where penetration by the formal banking system is required. However, these impeders should not inhibit the scaling up of financial inclusion initiatives.

1. To improve the effectiveness and streamlining the functioning of SLBC/UTLBC meetings, SLBC convernor banks have been advised to prepare a yearly calendar of programme (calendar year basis) in the beginning of the year itself, for conducting the meetings. The calendar of programme should clearly specify the cut off dates for data submission to SLBC and acceptance thereof by SLBC convenor. This yearly calendar should be circulated to all the concerned as an advance intimation for blocking of  future dates  of  senior  functionaries  of  various agencies  like  Central Government, State Governments, banks and RBI, etc. The SLBC/UTLBC meetings should be conducted as per the calendar under all circumstances. The agenda should also be circulated in advance without waiting for the data from defaulting banks. The matter should, however, be taken up with the defaulting banks in the SLBC meeting. In addition, SLBC convernor bank should write a letter in this regard to the controlling office of the defaulting banks under advice to Regional Office of RBI. SLBC convenor bank will, however, continue to follow-up with banks for timely data submission. Further, in case the Chief Minister, Finance Minister or other very senior functionaries are not able to attend the SLBC on some very rare occasion, then if so desired by them, a special SLBC meeting can be held.  Following broad guidelines should be used for preparation of the calendar of programmes:



Activity	To be completed by (Date)
Preparation    of    calendar    of    SLBC/UTLBC meetings and intimation to all the concerned of the  cut-off  dates  for  submission  of  data  and dates of meetings as per the dateline given below.	15th  January every year
Reminder regarding the exact date of meeting and submission of data by banks to SLBC	15 days before end of the quarter
Dead  line  for  receipt  of  information/data  by SLBC convenor bank	15 days from the end of the quarter
Distribution of agenda cum background papers	20 days from the end of the quarter
Holding of the meeting	Within 45 days from the end of the quarter
Forwarding  the  minutes  of  the  meeting  to  all stakeholders	Within 10 days from holding the meeting
Follow-up of the action points emerged from the meeting	To be completed within 30 days of forwarding the minutes (for review in the next meeting)



2. The objective of preparing calendar of meetings in the beginning of the year is to ensure adequate notice of these meetings and timely compilation and dispatch of agenda  papers  to  all  stake  holders.  It  also  ensures  clear  cut  guidelines  for submission of data to SLBC convenors by participating banks & Government Departments. It is expected to save precious time of SLBC convenors otherwise spent in taking dates from various senior functionaries attending these SLBC meetings.


3. SLBC  convenor     banks  need  to  appreciate  the  advantages  of  ensuring adherence to the yearly calendars.   SLBC convenor banks have therefore been advised to give wide publicity to the annual calendar at the beginning of the year and ensure  that  dates  of  senior  functionaries  expected  to  attend  the  meetings  are blocked for all meetings by their offices.  In case, despite blocking dates, if for some reason, the senior functionary is not able to attend the meeting, the meeting should be held as planned in the calendar.  More importantly, the data for review in these meetings should be received as per deadlines set in the calendar and those who do not submit the data in time should be asked to explain the reasons for delay in sending the data that may be recorded in the minutes of the meeting. Under no circumstances preparation of agenda should be delayed beyond stipulated dates as per calendar.

SLBC  convenor  banks  are  required  to  maintain  the  SLBC  websites  where  all instructions pertaining to LBS and Government Sponsored Schemes are made available and are accessible to the common man desiring any information relating to the conduct of meetings or State wise data/Bank wise performance. In order to standardize the information and data that is to be made available on SLBC website, an indicative list of the information & data is given in the Annex II.  SLBCs should arrange to place the prescribed minimum information on the websites of SLBCs of their bank and keep it updated regularly, at least on quarterly basis. Banks may note that the list is only an indicative list and SLBCs are  free to put any additional information considered relevant for the State.

SLBC convenor banks   are expected to co-ordinate the activities of all banks in the State,  discuss  with  the  State  Government  officials  the  operational  problems  in lending, extending necessary support  for banking development and to achieve the objective of financial inclusion.

1. There is a need for sensitising the District Collectors and CEOs of Zilla Parishads on banks and banking in general as also on the specific scope and role of the Lead Bank Scheme. In each State, a full day sensitisation workshop may be convened by the SLBC convenor bank in April/May every year. Such sensitisation should form part of the probationary training of such officers. Further, as soon as they are posted in a district, the SLBC may arrange for exposure visits for the District Collectors to the SLBC convenor’s office for sensitisation and understanding of the Lead Bank Scheme.


2. Staff at the operational level of banks and government agencies associated with implementation of the Lead Bank Scheme need to be aware of the latest developments and emerging opportunities. There is need for staff sensitisation/ training/seminars, etc. at periodic intervals on an ongoing basis.