The Services Area Approach was implemented under the purview of
Detailed Explanation:
Answer: Option 2 — Lead Bank Scheme
The Service Area Approach (SAA) was implemented as an improved version of the area approach under the Lead Bank Scheme. Under SAA, each commercial bank/RRB branch in rural and semi-urban areas is designated to serve 15-25 villages for planned and orderly development, ensuring effective linkages between bank credit, production, productivity, and income enhancement.
📝 Short Notes: Lead Bank Scheme & Service Area Approach
| Aspect | Details |
|---|---|
| Lead Bank Scheme | Launched in 1969 on the recommendation of Gadgil Study Group and Nariman Committee; aims to coordinate banking activities in each district |
| Service Area Approach (SAA) | Introduced in April 1989 as an improvement over the area approach of Lead Bank Scheme |
| Coverage | Each bank branch is allotted 15-25 villages in rural/semi-urban areas for comprehensive banking services |
| Objective | Ensure planned development, credit linkage with production, and prevent credit gaps in designated service areas |
| Responsibility | Designated branch meets all banking needs of its service area including deposit mobilization, credit delivery, and financial inclusion |
| Coordination | Lead bank coordinates with other banks, government agencies, and district authorities for comprehensive rural development |
Question 5 of 5 Financial Inclusion
Practice PYQ questions from this topic across all years
Consider the following statements: In terms of short-term credit delivery to the a...
All questions in this topic completed!