A Study on the Role of Lead Bank Scheme in the Development of Economy

The economic development of a country is not possible without a sound system of banking. The banking sector has playing a crucial role in a developing economy. It serves as the engine of growth and development. A number of novel and innovative schemes and programs have been designated and implemented time to time. Among them, Lead bank scheme, 1969 plays a strategic role in the development of Indian economy. This study pointed out the role of Lead Bank Scheme is useful for the development of the economy. The scheme is giving priority to rural and semi urban areas. The function of the lead banks is to coordinate the efforts of all other banks, financial institutions and other development agencies for bringing about the overall development of the districts especially in the rural and semi urban areas. The District credit plan is an essential part of the Lead Bank Scheme. The district credit plan covers particularly the priority sector activities in rural areas.