{"id":1729,"date":"2024-03-29T13:58:20","date_gmt":"2024-03-29T08:28:20","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1729"},"modified":"2024-04-03T07:14:41","modified_gmt":"2024-04-03T01:44:41","slug":"q-the-service-area-approach-was-implemented-under-the-purview-of","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-the-service-area-approach-was-implemented-under-the-purview-of","title":{"rendered":"Q. The Service Area Approach was implemented under the purview of"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>Integrated Rural Development Programme<\/li>\n\n\n\n<li>Lead Bank Scheme<\/li>\n\n\n\n<li>Mahatma Gandhi National Rural Employment Guarantee Scheme<\/li>\n\n\n\n<li>National Skill Development Mission<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (b) Lead Bank Scheme<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-66066c5d6686a\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Service area approach (SAA) is a developed version of the&nbsp;<strong>\u2018area approach\u2019&nbsp;<\/strong>structure of the&nbsp;<strong>Lead Bank Scheme<\/strong>.<\/li>\n\n\n\n<li>Under SAA plan&nbsp;<strong>each commercial bank \/ RRB branch in a rural and semi-urban area is designated to serve&nbsp;15 to 25 villages&nbsp;for the planned and orderly development<\/strong>&nbsp;of the areas.<\/li>\n\n\n\n<li>Under the Lead bank Scheme, the service area approach was<strong>&nbsp;introduced in 1989<\/strong>&nbsp;for the&nbsp;<strong>planned and orderly development of rural and semi-urban areas.<\/strong><\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"lead-bank-scheme\">Lead Bank Scheme<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Lead Bank Scheme is a scheme which aims at providing adequate banking and credit in rural areas through an&nbsp;<strong>\u2018service area approach\u2019,&nbsp;<\/strong>with one bank assigned for one area. It was&nbsp;<strong>introduced in 1969.<\/strong><\/li>\n\n\n\n<li>On the recommendation of the&nbsp;<strong>Gadgil Study Group and Banker\u2019s Committee<\/strong>, the Scheme was&nbsp;<strong>introduced by RBI.<\/strong>&nbsp;The committees found that the rural areas were not able to enjoy the benefits of banking.&nbsp; Also, that the&nbsp;<strong>commercial banks did not have adequate presence in rural areas&nbsp;<\/strong>and also lacked the required rural orientation which was hindering the growth of rural areas.<\/li>\n\n\n\n<li>To address this issue it was decided that&nbsp;<strong>some areas or sector will be given to the banks whether private or public in which that bank had to play a lead role in providing financial services<\/strong>&nbsp;to the people.<\/li>\n\n\n\n<li><strong>D.R.Gadgil study group<\/strong>&nbsp;recommended the adoption of an&nbsp;<strong>\u2018AREA APPROACH\u2019<\/strong>&nbsp;to evolve plans and programs for the development of adequate banking and credit structure in rural areas.<\/li>\n\n\n\n<li><strong>Prof. D R Gadgil committee recommended the following points:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Banks should provide integrated banking facilities in unbanked areas.<\/li>\n\n\n\n<li>Adoption of \u2018Area Approach\u2019 \u2013 in unbanked areas \u2013each bank should adopt an area.<\/li>\n\n\n\n<li>Help Agriculture &amp; Supplemental Security Income (SSI).<\/li>\n\n\n\n<li>\u2018District\u2019 identified as the smallest geographical unit for the scheme.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>NARIMAN&nbsp; committee appointed by RBI&nbsp;<\/strong>endorsed the ideas of area approach in its report recommended that each bank should concentrate on certain districts where it can act as&nbsp;<strong>\u2018LEAD BANK\u2019.<\/strong><\/li>\n\n\n\n<li>Pursuant to the above recommendations, the lead bank scheme was introduced by RBI in December 1969.<\/li>\n\n\n\n<li>The lead bank scheme assigned lead role&nbsp;<strong>to individual banks in the public sector and private sector<\/strong>&nbsp;for the districts allotted to them.<\/li>\n\n\n\n<li>A bank having a relatively large network of branches in rural areas of given districts and having adequate financial and manpower was generally been entrusted with the lead responsibility for that district.<\/li>\n\n\n\n<li>The lead bank act as a leader for coordinating the efforts of all credit institutions&nbsp;<strong>to increase the flow of credit to agriculture, small scale industries, and other areas.<\/strong><\/li>\n\n\n\n<li><strong>Objectives of the Lead Bank Scheme<\/strong>:\n<ul class=\"wp-block-list\">\n<li><strong><\/strong>Identify those regions which are unbanked and underbanked in districts and also evaluate their physiographic, agro climatic end Socio-economic conditions through economic survey.<\/li>\n\n\n\n<li><strong><\/strong>Help in removing regional imbalances through appropriate credit deployment.<\/li>\n\n\n\n<li><strong><\/strong>Extend banking facilities to unbanked areas<\/li>\n\n\n\n<li><strong><\/strong>Identify economically viable and technically feasible schemes.<\/li>\n\n\n\n<li><strong><\/strong>Bring structural and procedural changes in banking sector.<\/li>\n\n\n\n<li><strong><\/strong>Develop co-operation amongst financial and non-financial institutions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer: (b) Lead Bank Scheme Notes: Lead Bank Scheme<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[54],"class_list":["post-1729","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-54"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian 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