DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : MAJOR K.SIVA KUMAR

Designation : Head of Section
Branch :Commercial and Computer Practice
Institute : Government Polytechnic, Srikakulam
Year/Semester : V semester
Subject : Banking
Subject code : CCP 504(B)
Topic : Lead Banks and Merchant Banking
Duration : 50mts
Sub topic : Lead Bank Scheme – present status
Teaching Aids : PPT

CCP504(B).78 1
Objectives:

On completion of this Topic, you would be able to :

 Understand the present status of lead bank

scheme.

CCP504(B).78 2
Recap

 By 1973-74, lead banks completed their survey

in 380 districts.
 On the basis of these surveys, development
schemes were devised.

CCP504(B).78 3
Recap

 District level consultative committees were set up

with all the commercial Banks, other financial
institutions and Govt. Officials in the districts.
 These committees help in exchanging information
about borrowers etc.
 High power Committee set up by RBI in 1976.

CCP504(B).78 4
Recap

 This committee recommended District Credit plans

and Annual Action Plans to be formulated by Lead
Banks.
 These plans are helpful in fixing the targets for
various financial institutions in the district.
 These targets were based on Block-wise, Bank-
wise, Sector-wise etc.

CCP504(B).78 5
known to unknown

1. In which year actual surveys were completed ?

2. How many districts were covered by the Lead
bank scheme by 1973-74 ?
3. Why the district level consultative committees
were constituted ?

CCP504(B).78 6
known to unknown

1. What is the duration of District Credit Plans?

3. What is the duration of Annual Credit Plans ?

5. Why district credit plans and Annual Action plans

are formed ?

CCP504(B).78 7
PRESENT STATUS OF LEAD
BANK SCHEME:

 In October 1980, the Integrated Rural Development

Programme (IRDP) was extended to all the blocks
in the country.
 Lead banks were advised to prepare banking plans.
 These banks have to allocate the responsibility of
financing the identified beneficiaries for different
activities among the participating banks.

CCP504(B).78 8
PRESENT STATUS OF LEAD
BANK SCHEME:
 They have to integrate these activities with Annual
Action Plans.

 The Lead banks have to obtain complete details of

village wise distribution of subsidies, physical
programs, credit etc., from District Rural
Development Agencies.

CCP504(B).78 9
PRESENT STATUS OF LEAD
BANK SCHEME:

 They have to incorporate the same in the District

Credit Plans.
 They have to incorporate the same in the Annual
Action Plans.
 They should ensure that the participating bank
branches are processing and sanctioning the loans
to the identified beneficiaries from the villages
allocated to them.

CCP504(B).78 10
PRESENT STATUS OF LEAD
BANK SCHEME:

 Presently all the public sector banks are actively

engaged in implementation of Lead Bank Scheme.

 The main focus of the Lead Bank Scheme is to

enhance the proportion of bank finance to the
priority sector.

CCP504(B).78 11
PRESENT STATUS OF LEAD
BANK SCHEME:

The Lead Banks are financing various types of Schemes

they are.
1. Self-Help Groups
2. Rythu Mitra Groups
3. Minor-Irrigation Schemes
4. Rajiva Gruha Kalpa Scheme etc

CCP504(B).78 12
PRESENT STATUS OF LEAD
BANK SCHEME:

 These banks are fixing the targets for various

agencies and find the reasons for short falls.
 The Lead Banks are framing the Annual Action
Plans well in time as per the Reserve Bank of
India’s guidelines.
 They are doing an extraordinary job in reaching the
set targets under different Government sponsored
schemes.

CCP504(B).78 13
Summary

Presently all the public Sector Banks are actively

engaged in implementing the Lead Bank Scheme.

 They are coordinating the activities of various

agencies in the districts. Example:- ITDA,
DRDA, IKP etc
 Fixing the targets for the agencies and finding
the reasons for deviation from the targets

CCP504(B).78 14
Summary

 Lead Banks are financing various schemes

eg:- Self-Help Groups,
Rythu Mitra Groups etc.

 These banks are finding the reasons for short

falls in distributing the loans or benefits.

 Their main focus is to finance priority sector.

CCP504(B).78 15
 Quiz
• The main focus of Lead Bank Scheme
is to
• Finance Priority Sector
• Finance Housing Sector
• Give loans for Cars
• None

CCP504(B).78 16
Quiz

1. The Bankers are linking

a. All the Business Houses

b. Maximum Number of Credit Groups
c. Government Officials
d. None

CCP504(B).78 17
Frequently Asked Question

1. Explain the present status of Lead Bank Scheme.

CCP504(B).78 18
Assignment:

2. Find out which bank is the Lead Bank of your district.

3. Visit the Lead Bank Office and enquire about the
schemes devised by them to develop the district.
4. Also find out various agencies involved in developing
the district.

CCP504(B).78 19