Lead bank scheme

indroction,defination,level of working,function,advantages of lead bank

1. LEAD BANK SCHEME
THE LEAD BANK SCHEME WAS INTRODUCE
IN 1969 TO PROVIDE LEAD ROLES TO
INDIVIDUAL BANK (BOTH IN PUBLIC AND
PRIVATE ) FOR THE DISTRICT ALLOTED TO
THEM .THE STUDY GROUP APPOINTED BY
NATIONAL CREDIT COUNCIL IN 1969 UNDER
THE CHAIRMANSHIP OF PROF. D.R.GADGIL
RECOMMENDED “SERVICE AREA APPROACH
FOR THE DEVELOPMENT OF FINANCIAL
STRUCTURE.
BUT THE SCHEME WAS STARTED IN
1969UNDER NARIMAN’S COMMITTEE
RECOMMENDATION.
THE STUDIES BY THE COMMITTEES FOUND
THAT THE RURAL AREAS WERE NOT ABLE

2. TO ENJOY THE BENEFITS OF BANKING.
COMMERCIAL BANK DID NOT HAVE
ENOUGH PRESENCE IN RURAL AREAS AND
ALSO LACK THE REQURIED RURAL
ORIENTATIONDUE TO THIS THE RURAL
AREAS ARE NOT DEVELOP MUCH .
UNDER THE LEAD BANK SCHEME SPECIFIC
DISTRICTS ARE ALLOWTED TO EACH BANK,
WHICH WOULD TAKE THE LEAD ROLE IN
IDENTIFYING THE POTENTIAL AREAS FOR
BANKING AND EXPANDINGCREDIT
FACILITIES.LEAD BANK IS A LEADING
BANK AMONG THE COMERCIAL BANK IN A
DISTRICT. ie. HAVING MAXIMUM NUMBER
OF BANK BRANCHES IN THE DISTRICT.
LEAD BANK ACT AS A LEADER BANK FOR
COORDINATING THE EFFORTS OF ALL

3. 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 AREA.
IT PERFORMS THE WORK UNDER 3 LEVEL
1. STATE LEVEL
2. DISTRICT LEVEL
3. BLOCK LEVEL
ADVANTAGE
1. BETTER RELATIONSHIP BETWEEN
GOVERNMENT AND BANK.
2. INTER LINK THE COMMERCIAL AND
COOPERATIVE BANK.

4. 3. MORE EFFECTIVE BRANCH EXPANSION.
4. SPREAD THE AVAILABILITY OF BANKING
FACILITIES ALL OVER THE COUNTRY.
FUNCTION
THE ACTIVITIES OF LEAD BANK WORK UNDER 2
IMPORTANT PHASES
PHASE 1- SURVEY OF THE LEAD DISTRICT:
SURVING THE POTENTIAL AREAS FOR BENKING IN
THE DISTRICT.
EXAMINING THE AVAILABLE MARKETING FACILITIES
FOR AGRICULTURE AND INDUSTRIAL PRODUCTAND
LINK WITH MARKETING .
ESTIMATES THE CREDIT GAPS IN VARIOUS SECTORS
OF DISTRICT ECONOMY
PHASE 2 –PREPARATION OF CREDIT PLANS:

5. GIVE THE MAXIMUM CREDIT TO WEAKER
SECTION OF THE SOCIETY MAINLY FOR
PRODUCTIVE PURPOSES.
DISBURSE LOANS TO INCREASE THE
PRODUCTIVITY OF LAND IN AGRICULTURE AND
ALLIED ACTIVITIES, SO AS TO INCREASE THE
INCOME LEVEL.
THEREFORE LEAD BANK SCHEME EXCEPT THE
BANKER TO BECOME AN IMPORTANT
PARTICIPANT IN THE DEVELOPMENT 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.
THANK YOU
SUBMITTED TO

6. ANUP KUMAR SRIVASTAVA
SUBMITTED BY
PRIYA PRIYADARSHINI
BSC AGRICULTURE
2
ND
YEAR