Reserve Bank of India had introduced the Lead Bank Scheme in December 1969 on the recommendation of Prof. Gadgil Study Group on “Organizational Framework for implementation of Social Objectives” consequent to which RBI constituted Committee of Bankers headed by Sh.F.K.P.Nariman which recommended “Area Approach” and allotment of districts to the commercial banks for development to achieve objectives of national plans The following two recommendations made were also accepted by Reserve Bank of India:
 

1. In the first phase, the scheme aimed at identifying potential centres for bank operation and opening of branches in the district to strengthen banking infrastructure.
    
2. The second phase aimed at preparing District Credit Plans for specific area development.

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:

1. 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.
    
2. 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.

SLBC Convenor in J&K State (J&K Bank):
SBI happened to be the Convenor Bank of SLBC in J&K State till June 1983 and thereafter the Convenorship of SLBC has been entrusted to J&K Bank. Thus our bank has become the only Private Sector Bank in the country to be entrusted with the responsibility of Convenorship of State Level Bankers’ Committee (SLBC) by Reserve Bank of India.

The State Level Bankers’ Committee (J&K State) is comprised of about 130 members including all the banks / financial institutions operating in the state, high level representatives from the concerned developmental departments/ agencies of the State/ Central Government, Reserve Bank of India, NABARD, etc. The meetings are generally presided over by the Chief Secretary of the State. The list of members is given in the Annexure.

The SLBC (J&K) has framed a number of other Sub-Committees as described below:
 

1. Sub-Committee of SLBC on general issues. Its meetings are generally held in between the quarterly meetings of SLBC, wherein besides taking review of performance of banks/ developmental agencies, various specific issues referred by SLBC are discussed at length and reports submitted to the SLBC. (List of members given in Annexure-A)
2. Sub-Committee for Relaxation to Trade & Industry in the State of J&K. It has been constituted under the instructions of RBI with the objective of sorting out the difficulties faced by the business community in the State in light of the prevailing turmoil. It also recommends to RBI regarding continuance or otherwise of the concessions/ relaxations to the business community of the State. Its meetings are normally conducted yearly in the month of January. (List of members given in Annexure-B)
3. Sub-Committee on Doubling of Agriculture Credit. The Committee has been constituted at the behest of NABARD for ensuring proper implementation of the directives of the Central Government regarding doubling of Agriculture credit in the State in the next three years and monitoring thereof. (List of members given in Annexure-C) Dissolved in 71 SLBC
4. Sub-Committee for Export promotion. It has been constituted on the advice of Reserve Bank of India, following winding up of the erstwhile State-level Export Promotion Committee, with the objective of sorting out the problems faced by the Exporters  relating to Export Finance and other bank related issues at the State Level. Its meetings are being conducted through our Foreign Exchange Department. (List of members given in Annexure-D
5. Group for Bundling of subsidies to agriculture credit. This group on the issue of bundling of subsidies was formed in 70 SLBC under convenorship of PS Agriculture Production Department, J&K Government to comprise of representatives form RBI, NABARD, Agriculture Department, JKBL and PNB who will look into the matter and sort it out.
6. Group for fixing bank-wise/ region-wise targets for Handicrafts sector. The house in 70th SLBC had decided to form a group to be headed by Secretary Industries, J&K Government for fixing the bank-wise and region-wise targets under Handicrafts sector.
7. Group to suggest reforming of mechanism to finance GSS. In view of dismal performance and highest NPA level under GSS a group was formed in 71 SLBC under the convenorship of PS Labour & Employment, J&K Government to suggest an alternative route by reforming the existing Government constructed mechanism for doing financing under GSS whereby selection process is different and submit its recommendations to be a theme for a debate in next SLBC that how to finance Government Sponsored Schemes in a more innovative and banker friendly manner and improve performance in this segment. This core group would comprise of RBI, SBI, PNB and JKBL. The group would identify and appropriately addressed the reasons of poor credit off take and suggest introducing certain amount of accountability within the Government system so as to ensure that the field agencies sponsor cases of proper nature and also how the accountability should be built within the banking system to ensure prompt disposal of sponsored cases.
8. Sub-Committee for reforming the mechanism of financing GSS. The Sub-Committee was formed in 72 SLBC to reform the mechanism of financing GSS by making certain systemic changes after examining the recommendations of the earlier group formed for the purpose. This Sub-Committee under the Finance Secretary of J&K Government to be assisted by associated officers and consisting of ED of JKBL, one member from Labour/ Employment Department and one representative from SBI or PNB will work out final package and what changes are required in GSS for implementation so that this sector picks up.