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The basic aim of Lead Bank Scheme is that:
  • a)
    big banks should try to open offices in each district
  • b)
    there should be stiff competition among the various nationalized banks
  • c)
    individual banks should adopt particular districts for intensive development
  • d)
    all the banks should make intensive efforts to mobilize deposits
Correct answer is option 'C'. Can you explain this answer?
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The basic aim of Lead Bank Scheme is that:a)big banks should try to op...
Lead Bank Scheme Overview:
The Lead Bank Scheme was introduced by the Reserve Bank of India in 1969 with the aim of ensuring credit flow for development activities in rural and semi-urban areas. The scheme focuses on the concept of 'service area approach' where individual banks are assigned specific districts for intensive development.

Explanation of the Answer:

Individual Banks Adopting Specific Districts:
Under the Lead Bank Scheme, individual banks are required to adopt particular districts as their lead districts. This means that each bank takes responsibility for coordinating the efforts of all credit institutions in that district to ensure the effective implementation of various development programs.

Intensive Development:
By adopting specific districts, banks can focus on the overall development of that area by mobilizing resources, providing credit facilities, and supporting various developmental activities. This ensures that the resources are channelized effectively for the benefit of the local population.

Collaboration and Coordination:
The Lead Bank acts as a facilitator and coordinator between various financial institutions, government agencies, and local stakeholders to ensure that the credit needs of the district are met. This collaborative approach helps in addressing the specific requirements of the district.

Targeted Approach:
The scheme encourages banks to adopt a targeted approach towards credit disbursement and development activities in their lead districts. This helps in achieving the desired development goals and improving the overall socio-economic condition of the region.

Conclusion:
In conclusion, the basic aim of the Lead Bank Scheme is to promote intensive development in specific districts by assigning individual banks the responsibility of coordinating and implementing various development programs. This targeted approach ensures effective utilization of resources and contributes to the overall development of rural and semi-urban areas.
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The basic aim of Lead Bank Scheme is that:a)big banks should try to open offices in each districtb)there should be stiff competition among the various nationalized banksc)individual banks should adopt particular districts for intensive developmentd)all the banks should make intensive efforts to mobilize depositsCorrect answer is option 'C'. Can you explain this answer?
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The basic aim of Lead Bank Scheme is that:a)big banks should try to open offices in each districtb)there should be stiff competition among the various nationalized banksc)individual banks should adopt particular districts for intensive developmentd)all the banks should make intensive efforts to mobilize depositsCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The basic aim of Lead Bank Scheme is that:a)big banks should try to open offices in each districtb)there should be stiff competition among the various nationalized banksc)individual banks should adopt particular districts for intensive developmentd)all the banks should make intensive efforts to mobilize depositsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The basic aim of Lead Bank Scheme is that:a)big banks should try to open offices in each districtb)there should be stiff competition among the various nationalized banksc)individual banks should adopt particular districts for intensive developmentd)all the banks should make intensive efforts to mobilize depositsCorrect answer is option 'C'. Can you explain this answer?.
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