Pursuant to the recommendations of Gadgil Committee (October, 1969) and Nariman Committee (November, 1969) the Lead Bank Scheme was introduced by the Reserve Bank of India in December, 1969.The scheme emphasized making specific Banks in each district the key instruments of local development by entrusting them with the responsibility of locating growth centers, assessing deposit potential, identifying credit gaps and evolving a coordinated approach to credit deployment in each district, in concert with other Banks and credit agencies.
The scheme significantly did not envisage a monopoly of Banking Business by the Lead Bank in their district. The Lead Bank is expected to assume leadership role and act as consortium leader for coordinating the efforts of the credit institutions and accordingly the various districts in the country were allocated among the Public/select Private Sector Banks, as the Lead Bank for the district. As at the end of March 2009 26 Banks (Public & Private Sector) have been assigned Lead responsibility in 622 districts of the country.
Various fora have been created at the State Level, District Level and Block Level for coordination of activities of Commercial Banks and other financing agencies on the one hand and Government departments on the other. These for are also helpful in discussing problems in implementing the credit plans and finding out solutions for them, as also monitoring the progress in implementation of the credit plans. These are as under-
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State Level |
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State Level Banker's Committee |
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Definition |
SLBC is an Inter Institutional Forum for co-ordination and joint implementation
of development programmes by all financial institutions operating in a State |
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Functions |
Review the Banking developments in the State with special reference to Annual
Credit Plans, Government Sponsored Programmes, Flow of credit to Priority
Sector, Branch Expansion, Credit Deposit ratio, etc |
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Consider such issues as have been raised by the Member Banks or by the State
Government authorities and questions or Inter Bank differences of views and
approaches remaining unresolved at the District Consultative Committees (DCCs). |
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Address issues relating to- |
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Regional imbalances in availability of banking facilities |
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Regional imbalances in deployment of credit |
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Liaison with State Government |
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Review of functioning of DCC |
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Review of functioning of District Credit Plans |
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Uniformity in terms and conditions of lending |
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Review of credit flow to small borrowers in the neglected sectors, pending loan
applications and assistance under various Govt. sponsored programmes |
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Review of Credit Deposit Ratio, and |
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Any other State specific issues, with the permission of the Chair |
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Members |
It comprises the representatives of commercial banks (including
RRBs), State Co-operative Banks, Land Development Banks (LDB), NABARD, RBI, etc |
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Although envisaged as Bankers forum, Government Officials are also included. |
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Representatives of various organizations from different sectors of the economy
like retail traders, exporters, agricultural graduates (who wish to start
agri-clinics/ agri-business), farmers' unions and some other organizations, who
wish to protect the interest of their members, may also be invited as special
invitees in SLBC meetings for discussing their specific problems. |
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Representatives of Departments of State Governments. |
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Chairman |
The meetings are chaired by the Chairman/Executive Director of the convener bank |
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As per RBI Letter no. 21/26/2008-deV dated 05.09.2008., State Government
Official not below the rank of Chief Secretary/Development Commissioner of the
State needs to Chair SLBC Meetings. |
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Convener |
A Bank identified as Convener Bank by |
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Periodicity |
Quarterly |
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State Level Coordination Committee |
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Definition |
A forum for co-ordination between the State Government and financial
institutions and for the review of the performance of banks particularly in
assisting credit based development programmes taken up by the State Government. |
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Functions |
To make in-depth review of banks' performance in the implementation of various
credit based development programmes of Government, matters relating to
infrastructure and extension facilities, recovery performance including
legislative and administrative support from Government, problems of banking
development in the State, etc. |
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Members |
Representatives from banks, RBI, NABARD, SLDBs and the concerned development
departments of the Government. |
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Chairman |
The Chief Minister/Finance Minister of the State |
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Convener |
The Chief Secretary, Director of Institutional Finance, Registrar of
Co-operative Societies, |
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Periodicity |
Yearly, though, the Standing Committee of SLCC is expected to meet at quarterly
intervals. |
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District Level |
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District Level Consultative Committee (DLCC) |
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Definition |
DLCC is an Inter Institutional Forum at District Level for co-ordination and
joint implementation of development programmes by all Banks & Financial
Institutions on the one hand and Government Departments on the Other. |
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Functions |
Find solutions to the problem hindering the smooth functioning of the various
developmental activities under the Lead Bank Scheme at the district level |
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Members |
Commercial Banks, Co-operative Banks including DCCB and SLDB, RRBs, NABARD, etc.
and various State Government departments and allied agencies
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Chairman |
The District Collector. |
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Convener |
Lead District Manager (LDM) |
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Periodicity |
Quarterly |
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District Level Review Committee (DLRC) |
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Definition |
DLCC is an Inter Institutional Forum at District Level for co-ordination and
joint implementation of development programmes by all Banks & Financial
Institutions on the one hand and Government Departments on the Other. |
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Functions |
Evaluate progress made in implementation of ACP//DCP |
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Identifying problem areas and devising suitable remedial steps. |
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Members |
Local MPs and MLAs |
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Representatives of State Minority Commission, SC/ST Corporation |
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Zilla Parishad Chief |
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Chairman |
District Collector |
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Convener |
Lead District Manager (LDM) |
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Periodicity |
Quarterly |
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Block Level |
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Block Level Bankers' Committee (BLBC) |
Definition
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BLBC is an Inter Institutional Forum at Block Level aimed at achieving
coordination between credit institutions on one hand and field level development
agencies on the other to facilitate effective implementation of credit plans at
block level. |
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Functions |
To discuss the action plans of different bank branches and their aggregation
into Block Credit Plan; |
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To resolve operational problems in implementation of the credit programmes of
banks, particularly in regard to ensuring availability of inputs and linkages; |
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To review the progress in implementation of Government-sponsored schemes; |
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To review the implementation of the Block Credit Plan and the provision of other
inputs required so that bank credit becomes more productive; |
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Allocation of service area of a new branch to be opened in the block as and when
licence for a new branches are issued by the Reserve Bankof India; and |
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Hold meetings at least once in a quarter. |
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Members |
All the banks operating in the block including the district central co-operative
banks and RRB, Block Development Officer, and other technical officers in the
block, such as extension officers for agriculture, industries and co-operatives.
The Lead District Officer of RBI and the officer concerned from NABARD
selectively attend the meetings of the BLBCs |
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Chairman |
Lead District Manage |
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Convener |
CEO Janpad Panchayat |
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Periodicity |
Atleast once every quarter |