Correct Option
The Service Area Approach (SAA) was implemented in 1989 as a measure to strengthen the Lead Bank Scheme, which was introduced in 1969. Under SAA, each bank branch operating in rural and semi-urban areas was allocated specific villages to serve as its designated service area. The primary objectives included:
- Preparation of annual credit plans by the assigned bank branch for its service area.
- Coordination with local development agencies.
- Functioning as the nodal financial institution to meet the credit requirements of the assigned villages, thereby ensuring targeted and comprehensive credit delivery.
Incorrect Options
- Option (a) Integrated Rural Development Programme (IRDP): This programme, launched in 1978-79, aimed at poverty alleviation through providing assistance to the rural poor for various income-generating activities. It was a rural development initiative and not directly related to the banking sector's area planning or credit linkage mechanism like SAA.
- Option (c) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Introduced in 2005, MGNREGS is a social security measure that guarantees 100 days of wage employment in a financial year to adult members of rural households willing to do unskilled manual work. Its focus is on employment generation and asset creation, not on the geographical allocation of banking services.
- Option (d) National Skill Development Mission (NSDM): Launched in 2015, the National Skill Development Mission aims to create convergence across various skill training programmes and initiatives. Its objective is to provide institutional mechanisms for skill development, not to define service areas for bank branches or credit planning.