BANKING AFFAIRS

Detailed explanation-1: -Lead Bank Scheme was launched in 1969 towards the end of the Plan Holiday of 1966-1969 with the objectives of addressing the problem of unemployment, poverty and raising the living standard of the poor.

Detailed explanation-2: -It recommended that in order to enable the public sector banks to discharge their social responsibilities, each bank should concentrate on certain districts where it should act as a ‘Lead Bank’. 1.3 Pursuant to the above recommendations, the Lead Bank Scheme was introduced by Reserve Bank in December, 1969.

Detailed explanation-3: -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.

Detailed explanation-4: -Pursuant to the above recommendations, the lead bank scheme was introduced by RBI in December 1969. The lead bank scheme assigned lead role to individual banks in the public sector and private sector for the districts allotted to them.

Detailed explanation-5: -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.