Q. With respect to the Lead Bank Scheme, consider the following statements:
It was introduced during fourth five-year plan.
It was based on the recommendation of Usha Throat committee.
Block was identified as the smallest geographical unit for the scheme.
Which of the statements given above is/are correct? Answer:
Only 1
Notes:
The Lead Bank Scheme is a scheme which aims at providing adequate banking and credit in rural areas through an ‘service area approach’, with one bank assigned for one area. It was introduced in December 1969 (Fourth Five Year Plan).
On the recommendation of the Gadgil Study Group and Banker’s Committee, the Scheme was introduced by RBI.
D R Gadgil committee recommended that the banks should provide integrated banking facilities in unbanked areas; adoption of ‘Area Approach’ – in unbanked areas –each bank should adopt an area; help Agriculture & Supplemental Security Income (SSI); ‘district’ identified as the smallest geographical unit for the scheme.
Nariman committee appointed by RBI endorsed the ideas of area approach in its report recommended that each bank should concentrate on certain districts where it can act as ‘LEAD BANK’.
A high- power committee was constituted by the Government of India and it was headed by the Usha Thorat, former Deputy Governor of RBI, in order to suggest some reforms in the LBS.