P U N J A B
Contact at 0172- 2704607
Lead Bank of District
Under the scheme, each district of the country has been allocated to a specified commercial bank which is called as the Lead Bank of the district.
Service Area Approach (SAA) was introduced in 1989 under which villages were identified and assigned to bank branches based on their proximity and contiguity. Credit plans were prepared on an annual basis for the service area of each branch which involved co-ordination between the various developmental agencies and credit institutions.
Subsequently, the Advisory Committee on Flow of Credit to Agriculture and Allied Activities under Chairmanship of Prof. V .S. Vyas, June 2004, recommended that the service area concept be made mandatory only for government sponsored schemes. In terms of the recommendations of the Committee, the restrictive provisions along with certain other aspects of service area were removed from December 2004, except for the government sponsored schemes.
In 2007 a High Level Committee was constituted under the chairpersonship of Madam Usha Thorat, Deputy Governor, Reserve Bank of India to review the Lead Bank Scheme which was initially introduced in December 1969.
The High Level Committee, which submitted its final recommendations in August 2009, announced that “The overarching objective of Lead Bank Scheme shall be to enable banks and State Governments to work together for inclusive growth.” The Committee also advised Banks to focus attention on the urgent need for achieving 100% financial inclusion through penetration of banking services in the rural areas. RBI has accepted the recommendations of the High Level Committee and advised action areas to SLBC Conveners and Banks for implementation.