Question 61
AOptions
BSolution
The Service Area Approach (SAA) was introduced by the Reserve Bank of India (RBI) in 1989. Its main objective was to improve the quality of rural lending and ensure an orderly and planned development of rural and semi-urban areas by assigning specific areas (villages) to individual bank branches for extending credit. This approach aimed to bring about a focused and coordinated approach to rural credit. The SAA was implemented under the overall framework and purview of the Lead Bank Scheme, which itself was designed to coordinate the activities of all banks and other financial institutions in a district for rural development.
CStrategy
For questions on economic schemes and approaches, understand the core objective and the broader framework or program under which they were implemented. Many schemes are nested within larger initiatives. Knowing the historical context and the primary implementing body can be helpful.
DSyllabus Analysis
This question falls under the Indian Economy section of the UPSC Prelims syllabus, specifically focusing on banking, rural credit, and financial sector initiatives.
EQuestion Analysis
Easy. This is a direct factual question about a well-known banking initiative and its associated framework.