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Background SLBC

LEAD BANK SCHEME

Pursuant to the recommendations of Gadgil Committee(October, 1969) and Nariman Committee (November, 1969) the Lead Bank Scheme was introduced by the Reserve Bank of India in December, 1969.The scheme emphasized making specific Banks in each district the key instruments of local development by entrusting them with the responsibility of locating growth centers, assessing deposit potential, identifying credit gaps and evolving a coordinated approach to credit deployment in each district, in concert with other Banks and credit agencies.

The scheme significantly did not envisage a monopoly of Banking Business by the Lead Bank in their district. The Lead Bank is expected to assume leadership role and act as consortium leader for coordinating the efforts of the credit institutions and accordingly the various districts in the country were allocated among the Public/select Private Sector Banks, as the Lead Bank for the district. As at the end of March 2009 26 Banks (Public & Private Sector) have been assigned Lead responsibility in 622 districts of the country.

STRUCTURE AND FUNCTIONS OF VARIOUS FORA/COMMITTEES UNDER LEAD BANK SCHEME

Various fora have been created at the State Level, District Level and Block Level for coordination of activities of Commercial Banks and other financing agencies on the one hand and Government departments on the other. These for are also helpful in discussing problems in implementing the credit plans and finding out solutions for them, as also monitoring the progress in implementation of the credit plans. These are as under-

STATE LEVEL DISTRICT LEVEL BLOCK LEVEL
State Level Bankers’ Committee District Level Consultative Committee Block Level Bankers’ Committee
State Level Coordination Committee District level Review Committee
Steering Sub Committee Standing Committee of DCC
State Level District Level Block Level