banking
overview
| coop banks
| basics
|
lending
|adv banking
| products
| IT
& banking
daily news |
banking software|
bank directory|
internet banking|
IT directory|
Banknet Jobs
RBI GUIDELINES click here
RBI notifies implementation of the recommendations of high Level Committee to Review Lead Bank Scheme
March 02, 2010: Over a period of four decades, since the inception of the Lead Bank Scheme (LBS), several changes have taken place necessitating a relook at the scheme to make it more effective in the changed economic scenario with sharper focus on financial inclusion and recent developments in the banking sector. A High level Committee to review the Lead Bank Scheme was, therefore, constituted by Reserve Bank of India.
The Committee recommended that the Lead Bank Scheme is useful and needs to continue. The overarching objective of the Scheme is to enable banks and State Governments to work together for inclusive growth.
With a view to improving the efficacy of the LBS, RBI has advised that the various fora under the LBS need to be strengthened. More time of the SLBC/DCC machinery may be utilized to discuss specific issues inhibiting and enabling financial inclusion. At the District Consultative Committee (DCC) level, sub committees as appropriate may be set up to work intensively on specific issues and submit reports to the DCC for its consideration. Illustrative guidelines on the conduct of District Consultative Committee (DCC) meetings are detailed below:
I. Conduct of DCC Meetings
i) District Consultative Committee (DCC) meeting may be convened by the Lead Banks at quarterly intervals as per the extant instructions.
ii) At the District Consultative Committee (DCC) level, sub-committees as appropriate may be set up to work intensively on specific issues and submit reports to the DCC for its consideration.
iii) DCC should give adequate feedback to the SLBC on various issues that needs to be discussed on a wider platform, so that, these receive adequate attention at the State Level.
II. Agenda items
While all Lead Banks are expected to address the problems particular to the concerned districts, some of the important areas which are common to all the districts on which the Lead Banks should invariably discuss in the fora are as under:
monitoring mechanism to periodically assess and evaluate the progress made in achieving the road map to provide banking services within the time frame prescribed.
identification of unbanked/under banked areas for providing banking services in a time bound manner with a view to achieve 100% financial inclusion
the specific issues inhibiting and enabling IT enabled financial inclusion
issues to facilitate 'enablers' and remove/minimise 'impeders' for banking development for inclusive growth
monitoring initiatives for providing 'Credit Plus' activities by banks and State Governments such as setting up of Credit Counselling Centres and RSETI type Training Institutes for providing skills and capacity building to manage businesses.
review of performance of banks under Annual Credit Plan (ACP)
flow of credit to priority sector and weaker sections of the society
assistance under Government sponsored schemes
grant of educational loans
progress under SHG - bank linkage
SME financing & bottlenecks thereof, if any
timely submission of data by banks
review of relief measures (in case of natural calamities wherever applicable)
The above list is illustrative and not exhaustive. The Lead Banks may include any other agenda item considered necessary.
III. Role of LDMs
As the effectiveness of the Lead Bank Scheme depends on the dynamism of the District Collector and the LDM, with supportive role of the Regional/Zonal Office, the office of Lead District Managers (LDMs) should be sufficiently strengthened with appropriate infrastructural support being the focal point for successful implementation of the Lead Bank Scheme. Officers of appropriate level and attitude should be posted as LDMs. Apart from the usual role of LDMs like convening meetings of the DCC and DLRC, periodical meetings of DDM/LDO/ Government officials for resolving outstanding issues etc., the new functions envisaged for LDMs include the following:
drawing up the road map for banking penetration
monitoring implementation of annual credit plan
associate with the setting up of Financial Literacy and Credit Counselling Centres (FLCCs), RSETIs by banks
holding annual sensitisation workshops for banks and government officials with participation by NGOs/Public Relation Institutions (PRIs)
arranging for quarterly awareness and feedback public meetings, grievance redressal etc.
>>> GO TO PAGE 2
More News & Stories...Click here
Advertise
| Book Store |
About us |
Contact us
| Terms of use | Disclaimer
© Banknet India |
All rights reserved worldwide.
Best viewed with IE 4.00 & above at a screen resolution of 800 x 600
or higher