The Lead Bank Program is a generalised scheme that aims to provide banking in rural areas by assigning one bank to each location. What is the Indian Lead Bank Scheme? What are the goals of the project? What is the Usha Thorat Committee’s function in LBS? Continue reading to find detailed answers to all of these queries.
Also Read: Which Magazine is Best for UPSC Preparation? Know the Best Magazines for Current Affairs
Lead Bank Scheme UPSC
The Lead Bank Scheme, which was implemented near the end of 1969, entails assigning lead positions to particular banks (both public and private sector) for the districts that have been assigned to them.
A bank with a vast network of branches in a given district’s rural areas, as well as adequate financial and people resources, has typically been entrusted with the district’s lead role. As a result, distinct banks have been assigned to each of the country’s districts.
What is the Lead Bank Scheme?
The Lead Bank Scheme is a programme that uses a service area approach, with one bank assigned to each area, to provide adequate banking and credit in rural areas. It was first introduced in 1969 with this goal in mind.
The Scheme was introduced by RBI in response to the Gadgil Study Group’s and Banker’s Committee’s recommendations. According to the findings of the committees’ study, rural communities were unable to gain from banking. Furthermore, commercial banks lacked a sufficient presence in rural areas and lacked the necessary rural orientation, which hampered the expansion of rural areas.
Objectives of the Lead Bank Scheme
#One of the goals of the economic survey was to identify unbanked and underbanked areas in districts, as well as to assess their physiographic, agro-climatic, and socio-economic circumstances.
#Another goal was to assist in the removal of regional imbalances through proper credit allocation.
#The major goal was to provide banking services to hitherto unbanked communities.
#According to the committee’s findings, there are credit gaps in several sectors that need to be addressed, and a credit plan is required.
#It was critical to identify strategies that were both economically and technically practicable.
#In the banking sector, structural and procedural adjustments were required.
#The development of financial and non-financial institutions’ cooperation in the overall development of the districts was also required.
Also Read: UPSC CDS Answer Key 2022: Let’s Acknowledge the Procedure for Downloading CDS Answer Key 2022!
UPSC Exam Preparation Notes
#A system to analyse and evaluate progress toward reaching the roadmap’s goal of providing banking services within the time frame specified regularly.
#Identification of unbanked/underbanked locations to provide banking services promptly to achieve 100% financial inclusion.
#Review of bank performance under the Annual Credit Plan (ACP)
#Credit flow to key sectors and underserved groups in society
#Educational loans are given out.
#Bank connection is a major step forward for SHG.
How can UPSC Pathshala Help?
The UPSC is not your typical admission exam where you simply assess your knowledge. It necessitates the conceptual and diagnostic application of the knowledge you’ve gained from your research.
These are the greatest monthly publications for UPSC current affairs that would help an aspirant like you obtain all-encompassing information and viewpoints on current events. Check out UPSC Pathshala’s Pathshala Express: Current Affairs Program if you want a full-fledged current affairs course.
Conclusion
One of the most important aspects of the UPSC test, particularly the prelims, is current affairs. The above topic has provided many of the questions are directly in response to current events and developments that have economic, political, and social ramifications for the country. Aspirants are often looking for the best site for reading current events or the best UPSC notes for UPSC preparation.
If you are applying for the IAS, you must stay up with current events because your ability to pass the test is based on your knowledge of them. In addition, even static subjects like history and economics are answered in light of current events.
Also Read: Colombo Security Conclave UPSC Topic: Why is It Trending?
