SBI to act as lead bank for four newly-formed Meghalaya districts

The Reserve Bank of India (RBI) designated SBI to act as the lead bank in four newly constructed districts in Meghalaya. The central bank also assigned State Bank of India (SBI), the district working codes for the purpose of Basic Statistical Returns (BSR) reporting. The four new districts of Meghalaya are North Garo Hills, East Jaintia Hills, South West Khasi Hills and South West Garo Hills.

What is a Lead Bank Scheme (LBS)?

• The RBI introduced ‘Lead Bank Scheme’ in 1969, based on the recommendations of the Gadgil Study Group.
• The basic idea was to have an “area approach” for targeted and focused banking.
• Under the Scheme, each district had been assigned to different banks (public and private) to act as a consortium leader to coordinate the efforts of banks in the district particularly in matters like branch expansion and credit planning.
• The Lead Bank was to act as a consortium leader for coordinating the efforts of all credit institutions in each of the allotted districts for expansion of branch banking facilities and for meeting the credit needs of the rural economy.

Month: Current Affairs - December, 2013