The basic aim of Lead Bank Scheme is that
- Abig banks should try to open offices in each district
- Bthere should be stiff competition among the various nationalized banks
- Cindividual banks should adopt particular districts for intensive developmentCorrect
- Dall the banks should make intensive efforts to mobilize deposits
Explanation
The Lead Bank Scheme was introduced by the Reserve Bank of India in 1969 based on the recommendations of the Gadgil Study Group and the Nariman Committee.
The correct answer is C because the core philosophy of the scheme is the service area approach. Under this model, a specific public or private sector bank is assigned a particular district to act as the lead bank. This bank is responsible for surveying the resources and potential of that district, coordinating with other financial institutions and government agencies, and preparing a District Credit Plan to ensure intensive integrated development of the local economy.
Options A, B, and D are incorrect because the primary focus is not merely opening branches, promoting competition, or gathering deposits, but rather achieving coordinated development of a specific geographical area through a designated lead bank.
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