Introduction:

The State Level Bankers Committee (SLBC) stands as a testament to the collaborative efforts between the government and the banking sector in fostering development across various spheres. Established under the purview of the Lead Bank Scheme by the Reserve Bank of India (RBI), SLBC serves as a pivotal platform ensuring coordinated action towards banking development and social welfare initiatives within the state.

Lead Bank Scheme and Lead District:

The Lead Bank Scheme (LBS) originated from the Study Group headed by Prof. D. R. Gadgil (Gadgil Study Group) on the Organizational Framework for Implementation of the Social Objectives, which submitted its report in October 1969. The Study Group, recommended the adoption of an 'Area Approach' to evolve plans and programmes for the development of an adequate banking and credit structure in the rural areas.

Shri F. K. F. Nariman (Nariman Committee) endorsed the idea of an ‘Area Approach’ in its report (November 1969), recommending that in order to enable the PSBs to discharge their social responsibilities, each bank should concentrate on certain districts where it should act as a 'Lead Bank'. Pursuant to the above recommendations, the LBS was introduced by the Reserve Bank of India (RBI) in December 1969.

The Scheme aims at coordinating the activities of banks and other developmental agencies through various fora to achieve the objective of enhancing the flow of bank finance to the priority sector and other sectors and to promote banks' role in the overall development of the rural sector. For coordinating the activities in a district, a particular bank is assigned ‘Lead Bank’ responsibility of the district. The Lead Bank is expected to assume a leadership role for coordinating the efforts of the credit institutions and the Government.

Lead Bank Fora and Service Area Approach:

The Lead Bank Scheme is complemented by various fora including Block Level Bankers' Committees (BLBC), District Consultative Committees (DCC), and State Level Review Committees (SLRC). Additionally, SLBC spearheads the implementation of the Service Area Approach, emphasizing credit planning at the grassroots level to accelerate rural development.

Convenor Bank:

Indian Bank serves as the Convenor Bank in the Union Territory of Puducherry and holds the position of Lead Bank for Puducherry and Karaikal District, as well as the Mahe and Yanam regions.

Chairman of SLBC, Puducherry:

MD & CEO/ED of the Indian Bank is the Chairman of SLBC.

 

Fora under Lead Bank Scheme

S. No

Name of the Committee

Chair Person

Convenor

Frequency of Meeting

Members

Objective

1.

Block Level Bankers’ Committee (BLBC)

Lead District Manager

Block Development Manager

Quarterly

·        All Schedule Commercial Banks

·        District Central Co-operative Banks,

·        RRBs,

·        Block Development Officer

·         Technical officers in the block, such as extension officers for agriculture, industries etc.

Special Invitees:

·        Lead District Officer (LDO), RBI

·        District Development Manager, NABARD

 

The Block Level Bankers’ Committee (BLBC) facilitates coordination between credit institutions and field-level development agencies at the block level, overseeing the implementation of the Block Credit Plan and resolving operational issues

2.

District Consultative Committees (DCCs):

District Collector

Lead District Manager

Quarterly

·        Lead District Officer (LDO)

·        District Development Manager, NABARD

·        All Schedule Commercial Banks

·        District Central Co-operative Banks,

·        RRBs,

·        Various State Government departments and allied agencies

 

Common forum at the district level for bankers as well as Government agencies/departments to facilitate coordination in implementing various developmental activities under the Lead Bank Scheme.

This forum encompasses various crucial aspects, including:

·        Reviewing the performance of banks as outlined in the District Credit Plan (DCP).

·        Ensuring the smooth flow of credit to priority sectors and Weaker sections of society.

·        Facilitating the provision of educational loans to eligible candidates.

·        Monitoring the progress of Self Help Groups (SHGs) and their linkage with banks.

·        Addressing challenges related to Small and Medium Enterprises (SME) financing and identifying potential bottlenecks.

·        Reviewing the performance of INDSETI

·        Ensuring the timely submission of data by banks for effective monitoring and evaluation.

 

3.

District Level Review Committee (DLRC)

District Collector

Lead District Manager

Quarterly

·        Members of DCC

·        Public Representative Such as MLA, MP etc

·        Evaluate progress made in implementation of ACP//DCP

·        Identifying problem areas and devising suitable remedial steps.

4.

State Level Bankers’ Committee (SLBC)

MD& CEO or ED of the Convenor Bank

SLBC, Convenor

Quarterly

·        Commercial banks,

·        RRBs,

·        State Cooperative Banks,

·        RBI,

·        NABARD,

·        Heads of Government departments including representatives from National Commission for Scheduled Castes/Tribes, National Horticulture Board, Khadi & Village Industries Commission etc.

·        Reviewing the performance of achievement under ACP

·        Discussion on lending towards government sponsored schemes.

·        Reviewing the flow of Credit to  Priority Sector

·        Progress of KCC, SHG, Education Loans, Etc

·        Deliberation on CD ratio, Sector wise lending, NPA, Rural Infrastructure etc.

·        Status of opening of banking outlets in unbanked villages

·        Creating awareness about various Govt. Sponsor schemes, subsidies, etc.