RBI Circular: Union Bank of India Appointed Lead Bank for Polavaram and Markapuram Districts in Andhra Pradesh
Background and Context
The Reserve Bank of India has issued a formal circular — RBI/2026-27/09, reference number FIDD.CO.LBS.BC.No.01/02.08.001/2026-27, dated April 10, 2026 — addressing the administrative restructuring of banking responsibilities in the State of Andhra Pradesh following the creation of two new districts. The circular was directed to the Chairmen, Managing Directors, and Chief Executive Officers of the concerned Lead Banks.
Formation of New Districts in Andhra Pradesh
The Government of Andhra Pradesh officially notified the creation of two new districts through separate gazette notifications, both bearing the date of December 30, 2025:
- Polavaram — constituted via G.O. MS. No. 517, Revenue (Lands-IV) Department
- Markapuram — constituted via G.O. MS. No. 524, Revenue (Lands-IV) Department
These administrative additions to the state's district map necessitated a corresponding realignment under the Lead Bank Scheme, which mandates that every district in India must have a designated Lead Bank responsible for coordinating credit, financial inclusion, and developmental banking activities at the ground level.
Lead Bank Designation Under the Lead Bank Scheme
In response to the formation of these two new districts, the RBI has taken a decisive step by assigning Lead Bank responsibilities as follows: