Money Banking

The basic aim of Lead Bank Scheme is that

  1. there should be stiff competition among the various nationalized banks
  2. big banks should try to open offices in each district
  3. individual banks should adopt particular districts for intensive development
  4. all the banks should make intensive efforts to mobilize deposits

Answer

Lead Bank Scheme (LBS) was introduced in 1969, based on the recommendations of the Gadgil Study Group. The basic idea was to have an “area approach” for targeted and focused banking.

Districts were the units for area approach and each district could be allotted to a particular bank which will perform the role of a Lead Bank.

The correct option is C.