Lead Bank Scheme: Banking Awareness Preparation

Lead Bank Scheme:

The complete details of the lead bank scheme are available here. In the banking awareness section, you have to prepare more topics. Only then you can crack your dream bank exams with ease. The lead bank scheme is an important banking awareness preparation topic. Here we have added the aim, recommendation, role, objectives functions, and advantages of the lead bank scheme. So, that you can learn full details of the lead bank scheme from the exam point of view. In banking exams, many candidates are missing success by just 1 or 2 marks. So, you have to prepare well to beat the high competition. So, focus on your studies and complete the full syllabus in your preparation. Prepare all the banking awareness topics to attain success in the upcoming exams.

 

Guidely Online Mock Test Series

Aim:

The Lead Bank Scheme, introduced towards the end of 1969, envisages the assignment of lead roles to individual banks (both in the public sector and private sector) for the districts allotted to them.

Recommendation: 

The Lead Bank Scheme was introduced by RBI on the basis of the recommendations of both the Gadgil Study Group and Banker’s Committee (Nariman Committee).

Role:

The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.

Objectives:

Here are the objectives of the lead bank scheme.

1) Eradication of unemployment and underemployment. 

2) Provision of some of the basic needs of the people who belong to poor sections of the society.

3) Appreciable rise in the standard of living for the poorest of the poor.

4) Another objective was to help in removing regional imbalances through appropriate credit deployment.

5) The main objective was to extend banking facilities to unbanked areas

6) It was observed in the studies by the committee that there are certain credit gaps in a various sector which need to be address and a credit plan is needed.

Functions:

  • The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
  • Grant of Educational Loans
  • Progress under SHGs- bank linkage
  • Review of Performance of banks under Annual Credit Plan (ACP)
  • Survey resources and development of banking in the area. 
  • Survey the dependency on money lenders by industrial units, farms, etc., 
  • Survey the facilities for storing (fertilizers & agricultural inputs), marketing, credit facilities for marketing.
  •  Offering training to staff for advice to small borrowers & farmers in priority sectors

Advantages:

  1. Spread the availability of banking facilities all over the country. 
  2. Interlink the Commercial and Cooperative Banks. 
  3.  More effective Branch Expansion. 
  4. Better relationship between Govt. and Banks.
  5. Integration of credit activities of banks.
  6. Bottlenecks in the development of a District can be located and removed. 
  7. Lead Bank Scheme would assist in the implementation of the District Plan.

So, candidates completely know about the details of the aim, objectives, and functions of the lead bank scheme. So that in the exam, you will get questions regarding the scheme.

FAQs:

Here we have added some FAQs regarding this scheme.

Q: What is the basic aim of the Lead Bank Scheme?

A: To create stiff competition among the nationalized banks and the banks should open branches in all districts.

 

Q: What is the role of lead bank?

A: To coordinate the efforts of all other financial institutions, banks, and development agencies for attaining the overall development of the districts, especially in the rural and semi-urban areas.

 

Q: Which Committee recommended this scheme?

A: RBI introduced this scheme on the basis of the recommendations of both the Gadgil Study Group and Banker’s Committee (Nariman Committee).

 

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