The basic aim of Lead Bank Scheme is that
Answer & explanation
Answer: (c) individual banks should adopt particular districts for intensive development
Under the Lead Bank Scheme, one bank is given lead responsibility for each district. That bank coordinates the credit institutions and government agencies in the district. The scheme follows an 'Area Approach' to building banking and credit in rural areas. This is the idea in option (c): individual banks adopt particular districts for intensive development.
- ✓ (c) A particular bank is assigned lead responsibility for a district and takes the leadership role there. It coordinates the credit institutions in the district and drives its credit planning. This produces intensive, area-based development.
- ✗ (a) The scheme is not about big banks opening offices in every district. It allots one lead bank per district to coordinate banking and credit development there.
- ✗ (b) The lead bank acts as a consortium leader among the banks in its district. The scheme is built on coordination, not stiff competition.
- ✗ (d) Deposit mobilisation is not the basic aim. The focus is on developing an adequate banking and credit structure in rural areas through an area approach.
Remember · Lead Bank Scheme (1969), from the Gadgil Study Group and the Nariman Committee: each district gets one lead bank as consortium leader. It follows the 'Area Approach' to rural banking and credit.
Sources
- RBI Master Circular – Lead Bank Scheme (July 1, 2015) ↗ “For coordinating the activities in the district, a particular bank is assigned the lead bank responsibility of the district. The lead bank is expected to assume leadership role … The Study Group, therefore, recommended the adoption of an 'Area Approach' to evolve plans and programmes for the development of an adequate banking and credit structure in the rural areas.”
Question: UPSC Civil Services (Preliminary) 2012, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
