Question map
The Service Area Approach was implemented under the purview of
Explanation
The Service Area Approach (SAA) was introduced in April 1989 for planned and orderly development of rural and semi-urban areas and was applicable to all scheduled commercial banks including Regional Rural[3] Banks. This approach was implemented under the purview of the Lead Bank Scheme, which focuses on district-level banking coordination and planning. Under the Lead Bank Scheme, planning starts with identifying block wise/activity wise potential estimated for various sectors.[4] As the restrictive provisions of the service area have been removed in December 2004, the Service Area Approach is applicable only for Government Sponsored programmes.[5]
The other options are incorrect: IRDP was a beneficiary-focused poverty alleviation program, MGNREGA is a demand-driven wage employment program launched much later (2005), and the National Skill Development Mission focuses on skill development rather than banking service area allocation. The Service Area Approach was specifically a banking sector initiative under the Lead Bank Scheme to ensure systematic and non-duplicative coverage of rural and semi-urban areas by banks.
Sources- [1] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/10MC02072019.pdf
- [2] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/10MC02072019.pdf
- [3] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/10MC02072019.pdf
- [4] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/94ML010714FL.pdf
- [5] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/94ML010714FL.pdf
PROVENANCE & STUDY PATTERN
Guest previewThis is a classic 'Administrative Genealogy' question. It tests whether you understand the operational hierarchy of Indian banking history, not just current affairs. It falls squarely within the 'Financial Inclusion' and 'Rural Credit' chapters of standard Economy textbooks.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Was the Service Area Approach implemented under the purview of the Integrated Rural Development Programme (IRDP)?
- Statement 2: Was the Service Area Approach implemented under the purview of the Lead Bank Scheme?
- Statement 3: Was the Service Area Approach implemented under the purview of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA)?
- Statement 4: Was the Service Area Approach implemented under the purview of the National Skill Development Mission?
Shows IRDP was formed by bringing together several area‑based programmes (CADP, DPAP, SFDA, MFALA), indicating IRDP functioned as a consolidation of area/targeted schemes.
A student could use this pattern (IRDP as a vehicle for area‑based programmes) plus knowledge that Service Area Approach is an area/block‑level planning method to assess whether it plausibly would be subsumed under IRDP.
States IRDP was implemented through District Rural Development Agencies (DRDAs) and Block Level Agencies, highlighting block/district level administrative purview.
Given Service Area Approach operates at bank branches covering blocks/districts, one could check if its administrative units matched DRDA/block units to infer likely overlap with IRDP implementation mechanisms.
Describes IRDP’s initial confinement to specific development blocks and its objective to introduce schemes to develop the production potential of each area.
A student could combine this area/block focus with the known territorial nature of a Service Area Approach to evaluate whether the latter fits IRDP’s operational design.
Notes IRDP was introduced across all blocks (5011) with targets per block to assist families—emphasising blockwise implementation and asset provision.
Using this blockwise targetting fact, a student could ask if Service Area Approach’s blockwise coverage for services/credit would be consistent with IRDP’s block implementation and therefore likely coordinated under it.
Shows other programmes (DPAP, DDP, IWDP) were consolidated and their implementation basis shifted to watershed/area approaches—illustrating a pattern of grouping area‑based interventions under integrated schemes.
A student could use this consolidation pattern to hypothesize that similarly area‑oriented approaches (such as Service Area Approach) might be placed within larger integrated programmes like IRDP and then verify with targeted sources.
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