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RBI allots Lead Bank Responsibility to Central Bank and Indian Bank for new districts in Madhya Pradesh


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The Madhya Pradesh government notified Pandhurna and Maihar as two new districts in the state. RBI has allocated the Lead Bank responsibility of Pandhurna district to Central Bank of India and Maihar district to Indian Bank.

What is Lead Bank Scheme?

On the basis of the recommendations of both the Gadgil Study Group and Banker’s Committee (Nariman Committee) Reserve Bank of India introduced the “Lead Bank Scheme” towards the end of 1969. To enable banks to assume their lead role in an effective and systematic manner, all districts in the country (excepting the metropolitan cities of Mumbai, Kolkata, Chennai and certain Union Territories) were allotted among Public Sector Banks and a few Private Sector Banks.

The Lead bank role is to act as a consortium leader for co-coordinating the efforts of all credit institutions in each of the allotted districts for expansion of branch banking facilities and for meeting the credit needs of the rural economy. For the preparation of District Credit Plans and monitoring their implementation a Lead bank Officer (LBO) now designated as Lead District Manager was appointed in 1979.

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