Question map
Not attempted Correct Incorrect Bookmarked
Loading…
Q61 (IAS/2019) Economy › Money, Banking & Inflation › Banking regulation reforms Official Key

The Service Area Approach was implemented under the purview of

Result
Your answer:  ·  Correct: B
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. [1] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/10MC02072019.pdf
  2. [2] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/10MC02072019.pdf
  3. [3] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/10MC02072019.pdf
  4. [4] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/94ML010714FL.pdf
  5. [5] https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/94ML010714FL.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.
61%
got it right
PROVENANCE & STUDY PATTERN
Guest preview
Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. The Service Area Approach was implemented under the purview of [A] Integrated Rural Development Programme [B] Lead Bank Scheme [C] Mah…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 7.5/10
You're seeing a guest preview. The Verdict and first statement analysis are open. Login with Google to unlock all tabs.

This 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.

How this question is built

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)?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 18
Strength: 4/5
“The Integrated Rural Development Programme (IRDP) was launched by the Janta government in 1978-79, by bringing together the Community Area Development Programme (CADP), Drought Prone Area Programme (DPAP), Small Farmer Development Agency (SFDA), and Marginal Farmers and Agricultural Labourers Agency (MFALA). Integrated rural development is one of the important tasks before the Government of India. The National Common Minimum Programme (NCMP) of the Central Government reiterates the cardinal importance of villages to overall development of the country”
Why relevant

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.

How to extend

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.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 20
Strength: 4/5
“These families will also need support from social services such as health, education, and housing. The IRDP is implemented through District Rural Development Agencies (DRDAs) and Block Level Agencies at the grass-root level. The governing body of DRDAs include local MPs, MLAs, Chairman of Zila-Parishad, Heads of District Development Departments, representatives of Scheduled Castes and Scheduled Tribes, and women. Some of the important integrated rural development programmes include National Rural Development Programme (NRDP), Minimum Needs Programme (MNP), Training of Rural Youth for Self-Employment (TRYSEM, 1979), Development of Women and Children in Rural Areas (DWCRA, 1982), and Indira Awaas Yojna (IAY, 1985), etc.”
Why relevant

States IRDP was implemented through District Rural Development Agencies (DRDAs) and Block Level Agencies, highlighting block/district level administrative purview.

How to extend

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.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 19
Strength: 4/5
“and commits to work towards the development of rural areas. The main objective of Integrated Rural Development is to eradicate poverty, hunger and unemployment from rural India. The integrated rural development programme was confined in the initial phase to 2000 blocks out of the then 5004 development blocks in the country. Through coverage under this programme, about 3000 blocks and over 5.45 lakh families have been assisted. It is a centrally sponsored scheme with funds shared on 50:50 basis between the Centre and the states. The programme was intended to generate gainful employment for all able-bodied persons in rural areas within a period of about ten years by introducing such schemes as would help development of production potential of each area, and utilisation and upgrading of the human skills available.”
Why relevant

Describes IRDP’s initial confinement to specific development blocks and its objective to introduce schemes to develop the production potential of each area.

How to extend

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.

History , class XII (Tamilnadu state board 2024 ed.) > Chapter 9: Envisioning a New Socio-Economic Order > Integrated Rural Development Programme (IRDP), 1980–1999 > p. 120
Strength: 3/5
“In 1980 a consolidated rural development programme called Integrated Rural Development Programme was introduced. The The purpose was to provide rural households with assets which would improve their economic position, so that they would be able to come out of poverty. These could be improvements to the land, supply of cows or goats for dairying or help to set up small shops or other trade-related businesses. Introduced in all 5011 blocks in the country, the target was to provide assistance to 600 families in each block over five years (1980–1985), which would reach a total of 15 million families. The capital cost of the assets provided was covered by subsidies (divided equally between the Centre and the States) and loans.”
Why relevant

Notes IRDP was introduced across all blocks (5011) with targets per block to assist families—emphasising blockwise implementation and asset provision.

How to extend

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.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 4: Climate of India > Current Status of DPAP > p. 46
Strength: 3/5
“• Year: 2001 and 2003; Regions: Guidelines for the watershed development were renamed as 'Haryali Guidelines' • Year: 2008; Regions: Common guidelines for watershed development programme have been made effective since April1, 2008 • Year: 2009; Regions: Three watershed programmes (DPAP, DDP, IWDP) have been consolidated under a comprehensive programme called 'Integrated Watershed Management Programme' covered under the Ministry of Rural Development. These steps, if taken together, can go a long way in minimising the miseries of people living in the drought prone areas of the county. Some of the important achievements of the Drought Prone Area Programme include the Indira Gandhi Canal Project, Sardar Sarovar Project (Narmada), and the Central Arid Research Institute, Jodhpur to promote drought resistant plants, trees and crops.”
Why relevant

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.

How to extend

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.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements.

How to study

This tab shows concrete study steps: what to underline in books, how to map current affairs, and how to prepare for similar questions.

Login with Google to unlock study guidance.

Micro-concepts

Discover the small, exam-centric ideas hidden in this question and where they appear in your books and notes.

Login with Google to unlock micro-concepts.

The Vault

Access hidden traps, elimination shortcuts, and Mains connections that give you an edge on every question.

Login with Google to unlock The Vault.

✓ Thank you! We'll review this.

SIMILAR QUESTIONS

CDS-I · 2011 · Q16 Relevance score: -0.10

Mahatma Gandhi Rural Employment Guarantee Act makes a paradigm shift from the previous wage employment programmes by

IAS · 1997 · Q89 Relevance score: -0.14

Schemes of (i) Urban Micro Enterprises, (ii) Urban Wage Employment, and (iii) Housing and Shelter Upgradation are parts of

IAS · 2012 · Q5 Relevance score: -1.43

The basic aim of Lead Bank Scheme is that

CAPF · 2022 · Q54 Relevance score: -1.74

Which one of the following statements is not correct?

IAS · 1999 · Q28 Relevance score: -2.80

The Employment Assurance Scheme envisages financial assistance to rural areas for guaranteeing employment to at least