📈 EconomyUPSC 2019Fundamentals of Economy

The Service Area Approach was implemented under the purview of

aIntegrated Rural Development Programme
bLead Bank Scheme
cMahatma Gandhi National Rural Employment Guarantee Scheme
dNational Skill Development Mission
✓ Correct answer: b) Lead Bank Scheme
ExplanationThe Service Area Approach (SAA) was implement- ed under the purview of the Lead Bank Scheme.It was in- troduced by the Reserve Bank of India (RBI) in April 1989. The SAA aimed to facilitate the planned and orderly development of rural and semi-urban areas.Under this approach, each commer- cial bank branch in these areas was designated to serve a specific cluster of 15 to 25 villages.The designated branch was respon- sible for meeting the banking needs of its assigned service area, thereby strengthening the link between bank credit and rural development.158

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