The Reserve Bank of India (RBI) has clarified that the Lead Bank Scheme (LBS) is not applicable to Primary (Urban) Cooperative Banks (UCBs), even though these banks play an important role in priority-sector lending and financial inclusion. The applicant had sought to know why UCBs were excluded from the Block Level Bankers’ Committee (BLBC), District Consultative Committee (DCC), District Level Review Committee and State Level Bankers’ Committee under RBI’s revised Lead Bank Scheme guidelines issued on June 19, 2026, while District Central Cooperative Banks (DCCBs) were included in the BLBC and DCC. Responding to the queries, RBI stated that the Lead Bank Scheme is not applicable to Primary (Urban) Cooperative Banks. However, it clarified that UCBs continue to be subject to prescribed Priority Sector Lending (PSL) targets. The RBI also clarified that non-achievement of PSL targets will be taken into account while granting regulatory clearances and approvals for various purposes.