DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : MAJOR K.SIVA KUMAR

Designation : HEAD OF SECTION
Branch : DCCP
Institute : Government Polytechnic, Srikakulam.
Year/Semester : V Semester.
Subject : Banking.
Subject code : CCP 504 (B).
Topic : Lead Banks and Merchant Banking.
Duration : 50 min.
Sub Topic : Lead Bank Scheme.
Teaching Aids : PPT and Animations
CCP504(B).73 1
Objectives

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

 Understand the objectives of Lead Bank
Scheme.

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Recap

 RBI allots various districts for each nationalised

banks on the basis of the following.
1. Size of the Bank and resources available
with the Bank.
2. Capacity to handle volume of work.
3. Contiguity of districts.
4. Willingness of the states to have more than
one bank as a lead bank in the territory.

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Review Questions

1. What is a Lead Bank Scheme?

2. Why it was started?
3. When it was started?

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OBJECTIVES OF LEAD BANK SCHEME

1. The Lead Banks have to adopt particular districts.

2. They have to develop these districts intensively.
3. They have to identify the unbanked areas.
4. They have to open branches in all the important
localities in the lead district.
5. They have to extend maximum credit facilities for
development in the district.

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OBJECTIVES OF LEAD BANK SCHEME

1. These Banks have to mobilise the savings of the

people in the district.
2. They have to coordinate the activities of Co-
operative Banks, Commercial Banks and other
Financial Institutions in the district.

CCP504(B).73 6
OBJECTIVES OF LEAD BANK SCHEME

 Under this scheme the banks are expected to

 Act as leaders to bring about the co-
ordination of co-operative banks, commercial
banks and other financial institutions in their
respective leads districts.
 Identify unbanked centers where bank
branches can be located and
 Prepare a phased program for branch
expansion.

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OBJECTIVES OF LEAD BANK SCHEME

 On the basis of survey, the lead banks are

expected to estimate the deposit potential and
credit gaps, so that steps can be taken to tap the
deposit and fill the credit gaps.
 This will not only result in deposit mobilization,
but also in the expansion of finance in agriculture
and small industries.

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Summary

 Lead Bank Scheme was introduced to open

branches in all the important localities in the
district.
 These banks have to mobilise savings to the
people in the district.
 They have to coordinate the activities of the
Financial Institutions in the district.
 These banks have to identify the unbanked
areas.

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Quiz

1. Lead Bank have to identify

a) Unbanked areas
b) Town and Cities
c) Metropolitan areas
d) None

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Quiz

1. What is the main objective of Lead Bank

Scheme?
a) Branch expansion
b) Giving housing loans
c) Investments
d) None

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Frequently asked questions

1. What are the objectives of Lead Bank Scheme?

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