The genesis of Lead Bank Scheme can be traced to the Study Group, headed by Prof. D. R. Gadgil (Gadgil Study Group) on the Organisational Framework for the Implementation of the Social Objectives, which submitted its report in October 1969. The Study Group drew attention to the fact that commercial banks did not have adequate presence in rural areas and also lacked the required rural orientation. As a result, the banking needs of the rural areas in general and the backward regions in particular, could not be adequately taken care of by the commercial banks and the credit needs of rural sector of the economy, particularly agriculture, small-scale industry and services sectors remained virtually neglected. The Study Group, therefore, recommended the adoption of an 'Area Approach' to evolve plans and programmes for the development of an adequate banking and credit structure in the rural areas.

The Area approach was based on the philosophy of development of banking and credit in the rural areas based on the socio-economic dynamics as well the needs of the local area. It was also suggested that specific districts be earmarked to specific banks so that they could act as lead bank to facilitate the change of providing integrated banking facilities in rural areas. Under the chairmanship of Shri F.K.F Nariman the committee of bankers set up in 1969 appreciated the logic of Area approach in rural credit delivery. Reserve Bank of India (RBI) accepted the concept and Lead Bank Scheme was formulated in December, 1969. Each district in the country was assigned to specific bank and the identified bank was made a consortium leader in the process of strengthening delivery of credit in the district. The basic philosophy of the scheme was not to provide monopoly to the Lead Bank in the district. Instead the Lead Bank was to act as the leader, coordinating the efforts of all the credit delivery institutions to increase the outreach and extend banking facilities in the unbanked areas.

1-4-1990 Central Bank of India started a well established Lead District Manager office in Jhalawar it is working at Mini Sectrtitate Jhalawar. Presently Lead District Manager of Jhalawar is Mr. B.S. Rathore

Role of the Lead District Manager

The Lead District Manager who is appointed by the Lead Bank in the District, plays a key role in ensuring the success of the Lead Bank Scheme. The functions of the LDM include the following:

1. Identification of potential for formulation of bankable schemes for inclusion in the Annual Credit Plan (ACP).

2. Finalisation of District Credit Plan/Annual Credit Plan.

3. Allocation of shares of DCP/ACP outlays;

4. Monitoring overall progress in physical and financial terms in the implementation of ACP & Government Sponsored Programmes etc.

5. Reviewing/monitoring of the support forthcoming from the Government departments.

6. Reviewing the progress in disposal of loan applications and ensuring that applications are sent in a phased manner and not in bunches in the last quarter of the financial year.

7. Identifying problems/bottlenecks in the flow of credit as also of infrastructure inputs etc. and taking steps to overcome them.

8. Overseeing and ensuring smooth release of subsidies.

9. Monitoring the recovery position of financial agencies and rendering necessary help for recovery of overdues.

10. Taking up with State Government/SLBC/SLCC, items/issues which could not be tackled at the district level and ensuring proper follow-upthereof, including security arrangements, lack of infrastructural support etc.

11. Identification of unbanked centres for opening of branches and reviewing the progress in the opening of branches.

12. Evaluation of the ground level implementation of various schemes and benefits accruing there under to the identified beneficiaries.

Lead district Managers objective
* Drawing up the road map for banking penetration
* Monitoring implementation of Annual Credit Plan
* Associate with the setting up of Fiancial literacy and Credit Counselling Centres ( FLCCs) , RSETIs by Banks
* Holding annual sensitization workshop for banks and governments officials with participation by NGOs/Public Relation Instituins(PRIs)
* Arranging for quarterly awareness and feedback public meetings , grievance redressal etc.
 

National Goal of Domestics Banks
 

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