The basic aid of Lead Bank Scheme is that:
✓ Correct answer: c) Individual banks should adopt a particular district for intensive development.
ExplanationThe Lead Bank Scheme (LBS) was introduced by the Reserve Bank of India (RBI) in 1969 following the recommen- dations of the Gadgil Study Group (1969).The primary objec- tive of the scheme is to promote banking penetration, credit flow, and financial inclusion in rural areas by assigning a spe- cific bank to act as the lead bank for a district.This lead bank is responsible for coordinating banking activities and ensuring that credit reaches priority sectors like agriculture, MSMEs, and weaker sections.Key Features of Lead Bank Scheme (LBS) :1. Each district is assigned a Lead Bank (mostly a public sector or large private bank).2. Lead Bank is responsible for coordinating financial institutions, monitoring credit flow, and improving banking services in its district.3. Priority Sector Lending (PSL) is a major focus, ensuring credit to agriculture, MSMEs, and weaker sections.4. District Credit Plans (DCPs) are formulated to set targets for bank credit expansion in the region.5. SLBC (State Level Bankers’ Committee) and DLCC (District Level Coordination Committees) ensure implemen
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