BANKING AFFAIRS

Detailed explanation-1: -2.5 Thus, pursuant to the recommendations of the Gadgil Study Group and Nariman Committee suggesting adoption of ‘area approach’ in evolving credit plans and programmes for development of banking and the credit structure, the Lead Bank Scheme was introduced by the Reserve Bank in December, 1969.

Detailed explanation-2: -(iii) Pursuant to the above recommendations, the Lead Bank Scheme was introduced by the Reserve Bank of India in December 1969.

Detailed explanation-3: -2.3 The concept of ‘Lead Bank Scheme’ was first mooted by the Gadgil Study Group, which submitted its report in October 1969.

Detailed explanation-4: -The lead bank acts as a leader for coordinating the efforts of all credit institutions in the allotted districts to increase the flow of credit to agriculture, MSE and other economic activities with the district being the basic unit in terms of geographical area.

Detailed explanation-5: -Detailed Solution. The lead bank scheme in India started in 1969 on the recommendation of the Gadgil committee. The Lead Bank Scheme, launched in late 1969, envisages the assignment of key roles to individual banks (both in the public sector and in the private sector) for the districts allocated to them.