Lead Bank Scheme is aimed at achieving the national plan
objectives viz., (i) Removal of unemployment and under-employment;
(ii) Appreciable rise in the standard of living of the poorest
sections of the population; and (iii) Provision of some
of the basic needs of the people belonging to the poorer
sections. To achieve these goals, District Credit Plans
are prepared under Lead Bank Scheme to focus on:
Increasing productivity, production and employment
opportunities in different sectors in rural areas, especially
among weaker sections, to enable them to move above
the poverty line.
Promoting balanced development of different districts/
blocks within the districts.
To achieve these goals, there would be need to lay more
stress on promoting optimum use of land, labour and financial
resources for promoting productivity and production. It
is also necessary to further improve the co-ordination arrangements
between Government development programmes and bank lending
and promote availability of institutional credit assistance.
Allocation of Districts:
All the districts of the country have been allocated to
the banks (public sector and to a few private sector). The
bank, which has been assigned the lead bank responsibility,
is called Lead Bank of the district and such district for
the Lead Bank shall be termed as Lead District. The distribution
of districts was mainly done on the basis of certain criteria
like size and resources of a bank, geographical contiguity,
and ability to undertake lead responsibilities.
The J&K Bank has been assigned lead responsibility in respect
of 12 districts out of the total 22 districts across J&K
State viz. Baramulla, Kupwara, Rajouri, Poonch, Srinagar,
Pulwama, Budgam, Anantnag, Ganderbal, Shopian, Kulgam and
Bandipore. Lead Bank Responsibility of 4 districts of Srinagar,
Pulwama, Budgam and Anantnag was temporarily transferred
from SBI to our Bank in the year 1992 and now RBI have extended
the same on regular basis in 2007. The other 10 districts
of the State, Jammu, Kathua, Udhampur, Doda, Samba, Ramban,
Kishtwar, Reasi, Leh & Kargil have been allotted to SBI.
Lead Bank Fora:
For successful implementation of Lead Bank Scheme, there
are various co-ordination forums created for realistic credit
planning, to discuss and solve operational difficulties
and monitor the performance of the participating Credit
Institutions, agencies, etc. at Block, District, State and
National Levels. These forums are: -
Block Level: -
Block Level Bankers’ Committee (BLBC)
District Consultative Committee (DCC)
District Level Review Committee (DLRC)
Standing Committee (SC)
State Level Bankers’ Committee (SLBC)
State Level Review Committee (SLRC)
High Power Committee (HPC)
Regional Consultative Committee (RCC)
District Consultative Committee DCC: (Total membership=
20-25 members). Conducted by the Lead District Managers on quarterly
basis and presided over by the District Development
Standing Committee Meetings: Conducted by Lead District Managers on monthly basis.
(Usually the meeting of Standing Committee is not held
in the month in which the meeting of DLRC is held).
DLRC Meetings: These meetings are required to be held at quarterly
basis to review performance of banks under District
Credit Plan. The meetings are presided over by the District
Block Level Bankers’ Committee (BLBC) Meetings: Lead District Managers functions as Chairman of
BLBC and meetings are convened on quarterly basis in
every block of the district. The district comprises
of various blocks. Senior most Branch Manager of the
Block located at Block Headquarter) of the Lead Bank
happens to be the Convenor of BLBC forum.
Membership: All banks inclusive of RRBs, DCCBs, and
the concerned Developmental agencies of the Block.
SERVICE AREA APPROACH:
Service Area Approach introduced in the year 1989 by RBI
is the concept to accelerate the pace of Rural Development.
The main feature of this approach is the emphasis given
to credit planning process with the involvement of gross
root level functionaries from banks and Developmental agencies
at block level. The Branch Managers/ village level workers
of Developmental agencies have to conduct surveys in the
entire village falling in their service area taking into
consideration the infrastructure and market potential of
the area. These grass root level functionaries interact
through Block level Bankers’ Committee meetings thus paving
way for compilation of realistic Service Area/ Non service
area branch credit plan for each bank branch operating in
a block. The Annual action plan/ District credit plan should
be drawn up on the basis of updated village profile realistic
The unit of planning as envisaged under Service Area Approach
is “Village” and therefore, the credit plan has to start
from the village and aggregated at grass-root level, i.e.
first at branch-level, thereafter at block level and finally
at district level. Thereafter the District Credit Plans
submitted by the Lead Banks in the Districts to the SLBC
Convenor are aggregated by the SLBC Convenor into Annual
Credit Plan / Annual Action Plan.
Preparation of Annual Credit Plans:
The Branch Managers/ village level workers of Developmental
agencies have to conduct surveys in the entire village falling
in their service area taking into consideration the infrastructure
and market potential of the area. These grass root level
functionaries interact through Block level Bankers’ Committee
meetings thus paving way for compilation of realistic service
Area/ Non service area branch credit plan for each bank
branch operating in a block. The Block credit plans compiled
from the branch credit plan are put to deliberation/ approval
in the District level consultative committee meetings. The
credit plan has to start from the village and aggregated
at grass-root level, i.e. first at branch-level, thereafter
at block level and finally at district level.
Preparation of District Credit Plans:
District Credit Plans are simply aggregation of the Block
Credit Plans of the blocks falling in a district. These
aggregates are compiled, collated, reviewed and finalized
in DCC meetings and given the final shape of annual District
Credit Plans. The District Credit Plan represents the aggregation
of block credit plans/ credit plans of all credit agencies
operating in the district.
Annual Action Plan/ Annual Credit Plan:
These District Credit Plans, as per the Lead Bank Scheme,
are approved at district level and forwarded by the Lead
Banks of various districts in the State to the SLBC Convenor
Bank of the State where these Plans are aggregated and compiled
to form State Credit Plan/ Annual Action Plan. The Annual
Action Plan is placed before the State Level Bankers’ Committee
for information of all members.
Time Frame for preparation of Annual Credit Plans:
There is time frame for finalization of the district credit
plans. As per this time frame bank branch falling in rural,
semi-urban and urban areas have to initiate the process
of preparation of Annual credit plan on 1st December and
to complete it by 31st December every year. These credit
plans in the format of Lead Bank Returns-I for rural, semi-urban/
urban branches having service allocations and LBR-UI for
urban branches without any service Area – are to be submitted
to the respective controlling offices by 31 Dec. The controlling
offices have to convey their approval to the branches by
31st January of the next year so that the plans are placed
in the respective Block Level Bankers’ Committees for their
approval by the end of February. The approved Block Credit
Plans are placed in the DCC meeting for discussion/ approval
so that District Credit Plans are launched by 1st April.
The time frame for preparation of Annual credit plan/
District credit plan at glance:
1. Supply of a Background papers by the Lead Banks
2. Preparations of Branch credit plan by branches.
3. Approval of Branch credit plan by controlling office.
4. Finalization of Branch Credit plan at BLBC.
5. Aggregation at block level.
6. Aggregation at district level.
7. Launching of district credit plan.
Mr. Rakesh Gandotra Vice President,
Lead Bank Department, Financial Inclusion Department / Common Services Centre, Strategy & Business Development Division.
M.A Road Srinagar,
Jammu and Kashmir, India