Role of Lead Bank Scheme on Area Development: A Study with Special Reference to Chandbali Block of Odisha

Abstract

Banks are playing a vital role for the economic development of a nation. The Banking industry in India as emerged as one of the accredited agencies for providing rural credit after independence. A number of novel and innovative schemes and programmes have been designed and implemented. Among them, the Lead Bank Scheme (LBS) of 1969 plays a strategic role in the Indian economy. This has the objective of taking each and every district on the development path by reducing imbalances among regions and sectors. Lead Bank as the leader bank of the district coordinates the activities of banks, government offices and other stakeholders both at state level and district level. However, many structural and technological changes have taken place during recent periods. In the changed context of financial sector reforms, the validity of the scheme is being questioned in some quarters of the banking circle. The present research intends to study and throw light on the role of lead bank in area development. The impact of Government sponsored scheme on beneficiaries before and after utilizing the bank loan, in terms of income, asset and employment generation has be examined and evaluated in this research exercise.