Lead Bank Scheme (LBS) : A New Strategy of Banking
- The idea if lead bank scheme was initiated by the Gadgil Study Group of the National Credit Council in October 1969.
- The lead bank schemes provide a new strategy of banking and area development in the branch expansion program of banks in the post nationalization phase of banking growth in the country.
- The Reserve Bank of India (RBI) launched the "Lead Bank Scheme" in late 1969.
- Under the scheme, 398 districts in the country were allotted to the public sector banks and few private sectors bank.
- The lead banks are assumed to play the role of catalytic agents of banking and the rural economic development on their respective lead districts.
- Eviction of unemployment and under employment.
- Survival growth in the living map for the poorest of the poor.
- Some basic needs arrangements included in poor sections of the society.
- To evolve an integrated credit plan by examine the shortage of marketing facilities for agricultural produce and industrial output stocking of fertilizers and other agriculture inputs and other services catering to local needs.
- To identify and study local problems.
- For the appointment and training of banking staff to advise the small borrower and peasants in priority sector and to follow and visit the banks credit usage.
- Assessment of resources and feasibility for banking development by identifying the unified centres of allocated districts.
- To keep regular contact and communication with government and semi-government organizations.
- To set up branch in a step manner.
- To support of other primary lending agencies.