This paper presents an analysis of the problem of adjustment to the rural environment among the branch managers in commercial banks working in rural areas in consequence of the lead bank scheme. The analysis is based on data collected during an exploratory study of the lead bank scheme in a district in Gujarat State. The data suggest that urban-oriented managers find it difficult to adjust themselves to the realities of living and banking in villages. This difficulty arises mainly from the cultural gap between urban and rural social life as well as the social commitments and aspirations of the managers and their families. Although the problem of adjustment is less acute among those managers who have previous exposure to rural lie, they also aspire to move to urban areas and become part of the urban culture. On the basis of these findings, it is suggested that it would be useful to create in the rural areas urban facilities such as good schools and cinema houses. It is also suggested that the educated members of the rural branch managers' families may be trained and motivated to undertake welfare and developmental activities in villages. These suggestions imply that bank managements may need to consider a person's family as a unit for planning and decision making in the area of personnel management.