Under lead bank scheme the scheme of finance is prepared by
Answers
The Lead Bank Scheme, introduced towards the end of 1969, envisages assignment of lead roles to individual banks (both in public sector and private sector) for the districts allotted to them. A bank having a relatively large network of branches in the rural areas of a given district and endowed with adequate financial and manpower resources has generally been entrusted with the lead responsibility for that district. Accordingly, all the districts in the country have been allotted to various banks. 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, small-scale industries and other economic activities included in the priority sector in the rural and semi-urban areas, with the district being the basic unit in terms of geographical area.
As on 31.08.2018, the Bank has been assigned lead bank responsibility in respect of 238 districts (details are furnished in Annexure – I)
STATE LEVEL BANKERS' COMMITTEE
State Level Bankers' Committees are formed in all the States for inter-institutional coordination and joint implementation of programmes and policies by all the financial institutions operating in the State. Responsibility for convening State Level Bankers’ Committee (SLBC) meetings has been assigned to various commercial banks. SLBC meetings, held quarterly, provide for interaction amongst the various banks in the State on the one hand and between the banks and the State Government authorities on the other.
SBI has been assigned responsibility of convenorship of SLBC in 12 States and 1 Union Territory(details are furnished in Annexure – II)
Lead Districts allotted to SBI Annexure - I
Contact details of SLBC Annexure - II
The National Credit Council was set up in Dec. 1967 to determine the priorities of bank credit among various sectors of the economy. The NCC appointed a study group on the organizational framework for the implementation of social objectives in Oct. 68 under the Chairmanship of Prof. D R Gadgil. The study group found that the Commercial Banks had penetrated only 5000 villages as of June 67 and out of the institutional credit to agriculture, at 39%, the share was negligible at 1%, the balance being met by the co-operatives. The Banking needs of the rural areas in general and backward in particular were not taken care of by the Commercial Banks. Besides, the credit needs of Agriculture, SSI and allied activities remained neglected.
Therefore, the group recommended the adoption of an area approach for bridging the spatial and structural credit gaps. Later, All India Rural Credit Review Committee 1969 endorsed the view that CBs should increasingly come forward to finance activities in rural areas.
Objectives of Lead Bank Scheme:
Eradication of unemployment and under employment
Appreciable rise in the standard of living for the poorest of the poor
Provision of some of the basic needs of the people who belong to poor sections of the society