The RBI launched the Lead Bank Scheme (LBS) to mobilise deposits and step-up lending to weaker sections of the economy. When was the scheme launched?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 1969.
The Lead Bank Scheme was launched by the Reserve Bank of India in December 1969, following recommendations from both the Gadgil Study Group and the Nariman Committee . The scheme assigned each district a “lead” bank tasked with coordinating branch expansion, deposit mobilization, and lending—especially to weaker and rural sections. Its primary goal was to ensure the flow of banking services and credit to underbanked areas and priority sectors. Over time, the Lead Bank Scheme has been periodically reviewed and remains integral to coordinated rural banking efforts across India.