Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q5 (IAS/2012) Economy › Money, Banking & Inflation › Banking structure Answer Verified

The basic aim of Lead Bank Scheme is that

Result
Your answer: —  Â·  Correct: C
Explanation

The Lead Bank Scheme (LBS) was introduced by the Reserve Bank of India in December 1969, following the recommendations of the Gadgil Study Group and the Nariman Committee [3]. The core philosophy of the scheme is the 'Area Approach,' where individual public and private sector banks are assigned specific districts to act as consortium leaders [3]. The basic aim is for these designated lead banks to adopt particular districts for intensive development by coordinating with other financial institutions and government agencies [1]. This involves conducting surveys to identify credit gaps, preparing District Credit Plans, and enhancing the flow of bank finance to priority sectors to promote overall rural development [1]. While branch expansion and deposit mobilization are components of the scheme, they serve the broader objective of integrated district-wise economic development rather than being the sole primary aim.

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > ii) Lead Bank Scheme > p. 74
  2. [3] https://slbcne.nic.in/NE/intro.pdf
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
75%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2019 · Q61 Relevance score: -1.95

The Service Area Approach was implemented under the purview of

CAPF · 2011 · Q43 Relevance score: -2.88

Which of the following statements regarding Regional Rural Banks (RRB) in India is/are correct ? 1. The basic aim of setting up the RRBs is to develop rural economy. 2. The area of RRBs is limited to a specific region comprising one or more districts. 3. RRBs are sponsored by Commercial Banks. Select the correct answer using the code given below :

CDS-I · 2016 · Q60 Relevance score: -3.50

Shishu, Kishor and Tarun are the schemes bf:

IAS · 1999 · Q50 Relevance score: -4.03

The farmers are provided credit from a number of sources for their short and long-term needs. The main sources of credit to the farmers include