Economics • Banking & FinanceMedium
What role does the Lead Bank Scheme play in districts such as Raipur, Bilaspur, and Durg in Chhattisgarh?
A. Designating a specific commercial bank to spearhead banking development, credit planning, and inter-institutional coordination in each district✓ Correct Answer
B. Granting licenses to new commercial banks and foreign bank branches within municipal limits
C. Regulating interest rates on gold loans and personal advances across all cooperative societies
D. Managing the foreign exchange reserves and bullion holdings of the state treasury
💡 Solution & Explanation
Under the Lead Bank Scheme, a designated commercial bank assumes leadership responsibility for coordinating the expansion of banking infrastructure, formulating district credit plans, and fostering collaboration among financial institutions in a specific district. This decentralized approach ensures balanced credit availability across urban and rural sectors. Lead district managers conduct regular reviews with participating financial institutions.
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