Lead bank scheme

Lead Bank Scheme:
The complete details of the lead bank scheme are available here. In the banking awareness section, you have to prepare more topics. Only then you can crack your dream bank exams with ease. The lead bank scheme is Aim:
The Lead Bank Scheme, introduced towards the end of 1969, envisages the assignment of lead roles to individual banks (both in the public sector and private sector) for the districts allotted to them.
Recommendation:
The Lead Bank Scheme was introduced by RBI on the basis of the recommendations of both the Gadgil Study Group and Banker’s Committee (Nariman Committee).
Role:
The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
Objectives:
Here are the objectives of the lead bank scheme.
1) Eradication of unemployment and underemployment.
2) Provision of some of the basic needs of the people who belong to poor sections of the society.
3) Appreciable rise in the standard of living for the poorest of the poor.
4) Another objective was to help in removing regional imbalances through appropriate credit deployment.
5) The main objective was to extend banking facilities to unbanked areas
6) It was observed in the studies by the committee that there are certain credit gaps in a various sector which need to be address and a credit plan is needed.
Functions:
The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
Grant of Educational Loans
Progress under SHGs- bank linkage
Review of Performance of banks under Annual Credit Plan (ACP)
Survey resources and development of banking in the area.
Survey the dependency on money lenders by industrial units, farms, etc.,
Survey the facilities for storing (fertilizers & agricultural inputs), marketing, credit facilities for marketing.
Offering training to staff for advice to small borrowers & farmers in priority sectors
Advantages:
Spread the availability of banking facilities all over the country.
Interlink the Commercial and Cooperative Banks.
More effective Branch Expansion.
Better relationship between Govt. and Banks.
Integration of credit activities of banks.
Bottlenecks in the development of a District can be located and removed.
Lead Bank Scheme would assist in the implementation of the District Plan

1. LEAD BANK SCHEME BY : AREPALLI NAVEEN KUMAR

2. The Lead bank To put in simple terms, in order to co-ordinate the efforts of all the Banks in a district, towards,among others, the flow of credit to all the priority sectors of economy particularly the weaker sections, a Bank having maximum number of branches in the district is designated as a lead Bank by RBI.

3. The lead Bank scheme The study group appointed by National Credit Council (NCC) in 1969 under the chairmanship of Prof. D.R.Gadgil recommended “Service Area Approach” for the development of financial structure. In the same year i.e., 1969, RBI appointed Sri. F.K.F Nariman committee to examine recommendations of Prof. Gadgil’s study group.

4. CONTD….. The Nariman committee also endorsed the views of the Gadgil committee on “Service Area Approach” and recommended the formulation of “Lead Bank Scheme”. The RBI accepted the Nariman’s committee recommendations and lead bank scheme came into force from 1969. . Under the lead bank scheme, specific districts are allotted to each bank, which would take the lead role in identifying the potential areas for banking and expanding credit facilities.

5. CONTD…… Lead bank is the leading bank among the commercial banks in a district i.e. having maximum number of bank branches in the district. Lead bank acts as a consortium leader for coordinating the efforts of all credit institutions in the each allotted district for the development of banking and expansion of credit facilities.

6. The activities of lead bank can be handled under two important phases Phase I: Survey of the lead district Phase II- Preparation of credit Plans

7. Phase I: Survey of the lead district The RBI has mentioned the following functions o f leadbank underphase-I . Surveying the potential areas for banking in the district. . Identifying the business establishments which are so far dependent on non – institutional agencies for credit and financing them so as to raise their income

8. Examining the available marketing facilities for agricultural and industrial products and linking credit with marketing. . Invoking cooperation among different banks in opening new bank branches. . Estimating the credit gaps in various sectors of district economy. . Developing contacts and maintaining relationship with the Government and other agencies. CONTD…..

9. Phase II- Preparation of credit Plans RBI emphasized that the lead bank should Formulate the bankable loaning schemes involving intensive use of labour, so as to generate additional employment. Disburse loans to increase the productivity of land in Agriculture and allied activities, so as to increase the income level. Give maximum credit to weaker sections of the society mainly for productive purposes.

10. CONTD….. Therefore lead bank scheme expects the banker to become an important participant in the developmental process in the area of its operation in rural areas, and the service area approach put the banker in the position of implementing the development plans.

11. District Wide Lead Bank List Of Karnataka State SR . District Name Name of Lead Bank 1. Bagalkot Syndicate Bank Bengaluru [Rural] Canara Bank 3 . Bengaluru [Urban] Canara Bank 4 . Belagavi Syndicate Bank 5 . Ballar i Syndicate Bank Bidar State Bank of India Vijayapura Syndicate Bank Chamarajanagara State Bank of Mysore Chickballapura Canara Bank Chickmagalur Corporation Bank Chitradurga Canara Bank Dakshina Kannada Syndicate Bank Davanager Canara Bank Dharwa d Vijaya Bank Gadag State Bank of India Gulbarga State Bank of India

12. CONTD..… SR . District Name Name of Lead Bank 17. Hassan . Canara Bank 18. Haveri Vijaya Bank 19. Kodagu Corporation Bank 20. Kolar Canara Bank 21. Koppal State Bank of Hyderabad 22. Mandya Vijaya Bank 23. Mysuru State Bank of Mysore 24. Raichur State Bank of Hyderabad 25. Ramanagara Corporation Bank 26. Shivamogga Canara Bank 27. Tumakuru State Bank of Mysore 28. Udupi Syndicate Bank 29. Uttara Kannada Syndicate Bank 30. Yadgir State Bank of India

13. Reference : https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.rbi.org.in/upload/Publications/PDFs/35608.pdf&ved=2ahUKEwiWtKyKpfHwAhWPYysKHRTlBKAQFjAKegQIHRAC&usg=AOvVaw1QgiAAza9Hhlw0MmUzIrOP https://www.google.com/url?sa=t&source=web&rct=j&url=https://msmedibangalore.gov.in/files/Lead-Banks-Cotact-details.pdf&ved=2ahUKEwiWtKyKpfHwAhWPYysKHRTlBKAQFjALegQIHxAC&usg=AOvVaw1InVkgOKelXGgzE7NqKEd4 http://www.slideshare.net/NISHANTHSEKAR1/lead-bank-scheme-77002293?from_m_app=android https://www.google.com/url?sa=t&source=web&rct=j&url=http://agcollegejagtial.weebly.com/uploads/4/6/5/5/46554149/aeco_142.pdf&ved=2ahUKEwjL0oSzt_HwAhWMXCsKHdE7DzkQFjAAegQIAxAC&usg=AOvVaw2tnxtg5wpSpJPLKV7kNu84