Current Position of Lead Bank Scheme

The Usha Thorat committee recommended that Lead Bank Scheme should prevail and continue. In this context, after a long period, in March 2010, RBI released the guideline for Lead Bank Scheme. Some important features of these Guidelines is as follows:

1. Conduct of DCC Meetings: The Lead Banks may convene the District Consultative Committee (DCC) meeting at quarterly intervals. Appropriate sub committees may be set up to work intensively on issues.
2. Agenda items : The Lead Banks are expected to address the problems of the particular districts.

Some important areas have been classified by RBI and they are as follows:

1. Periodical assessmenent and evaluation of the progress made to provide banking services.
2. Identification of unbanked/under banked areas for providing banking services in a time bound manner with a view to achieve 100% financial inclusion.
3. Addressing the special issues that inhibit the 100% Financial Inclusion Goals.
4. Addressing the IT enabled Financial Inclusion.
5. Facilitating enables and removing minimizing the impediments for banking development for inclusive growth.
6. Review of the performance of the Banks.
7. Emphasis on priority sector advances.
   1. Assistance under Government Sponsored Schemes.
   2. Grant of educational loans

Overall we can say, RBI’s guidelines to revitalize the lead bank scheme that to achieve the goal of 100% Financial Inclusion and Inclusive Growth. RBI has given a greater role to play by the private sector banks by advising that private sector banks should involve themselves more actively by bringing in their expertise in strategic planning and leveraging on Information Technology. The Lead Banks, on their part, should also ensure that private sector banks are more closely involved in the LBS, both while drawing up and in implementing the ACP.