gs1medium
The basic aim of the 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.
▶ Answer & Explanation
Correct answer: C. individual banks should adopt particular districts for intensive development
The Lead Bank Scheme was introduced in 1969 to ensure that commercial banks play a more active role in district-level credit planning and development. Under this scheme, each district is assigned to a designated bank (the 'lead bank') which takes the primary responsibility for assessing the credit needs of the district and coordinating the efforts of other financial institutions in meeting these needs, thereby fostering balanced regional development.
Source: UPSC gs1 2012