Economics • Banking & FinanceMedium
What is the primary operational objective of the Lead Bank Scheme in coordinating banking development across the districts of Sikkim?
A. To assign specific districts to designated commercial banks to act as consortium leaders for expanding banking access and credit coordination✓ Correct Answer
B. To centralize all currency printing operations within state capitals
C. To eliminate all private sector banks from operating in hill regions
D. To fix uniform deposit interest rates for all non-banking financial companies
💡 Solution & Explanation
The Lead Bank Scheme designates a specific commercial bank for each district to spearhead banking expansion, foster inter-institutional coordination, and address credit gaps in collaboration with local administration. Currency printing is exclusively handled by the central bank. Lead banks play a vital role in formulating district credit plans in Sikkim.
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