Lead Bank Scheme Structure and Implementation
The Lead Bank Scheme is a mechanism to coordinate the efforts of banks and government agencies to improve the flow of credit to priority sectors and weaker sections of society.
The scheme has three-tier structure:
- Block Level Bankers’ Committee (BLBC): A forum for bankers and government officials to discuss credit needs and issues at the block level.
- District Consultative Committee (DCC): A committee that oversees the implementation of the Lead Bank Scheme at the district level, comprising bankers, government officials, and other stakeholders.
- State Level Bankers’ Committee (SLBC): A high-level committee that reviews the performance of banks and government agencies in implementing the Lead Bank Scheme at the state level.
The DCC and SLBC meetings are held quarterly and annually, respectively, to review progress, discuss issues, and set targets for the next period.
The scheme’s implementation involves:
- Preparation of credit plans: Banks prepare credit plans to identify potential areas of lending and allocate resources accordingly.
- Potential Linked Credit Plans (PLPs): A mechanism to link credit plans with potential areas of lending to ensure effective utilization of resources.
The scheme also involves capacity building, training, and sensitization programs for bankers and government officials to improve their skills and knowledge.
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