Correct Option
The Lead Bank Scheme, introduced in 1969, aims to assign a specific bank (Lead Bank) to each district. This designated bank is responsible for coordinating the efforts of all financial institutions within that district. Its primary objectives include:
- Facilitating credit planning and expansion of banking facilities.
- Promoting financial inclusion and ensuring area-specific credit disbursal.
- Coordinating with local government and other developmental agencies for integrated development.
Therefore, the scheme focuses on individual banks adopting particular districts for intensive development through a coordinated approach.
Incorrect Options
- Option (a): The Lead Bank Scheme does not mandate all large banks to establish offices in every district. Instead, it assigns a single bank as the lead bank for a district to coordinate banking activities.
- Option (b): The fundamental objective of the scheme is to foster coordinated development among banks and other agencies at the district level, rather than promoting competition among nationalized banks.
- Option (d): While deposit mobilization is a general function of banks, the core aim of the Lead Bank Scheme is to ensure targeted credit disbursal and focused developmental efforts in specific districts through a designated lead bank.