Banking and Financial Services
Question
The Service Area Approach was implemented under the purview of
(a) Integrated Rural Development Programme (b) Lead Bank Scheme (c) Mahatma Gandhi National Rural Employment Guarantee Scheme (d) National Skill Development Mission
Options
Integrated Rural Development Programme
Lead Bank Scheme
Mahatma Gandhi National Rural Employment Guarantee Scheme
National Skill Development Mission
Explanation
The Service Area Approach was a key component of the Lead Bank Scheme, introduced to ensure adequate credit flow to rural areas by assigning geographical areas to banks. Under this approach, each commercial bank was assigned responsibility for credit development in specific areas. This scheme aimed to provide institutional credit to farmers and other borrowers in rural regions. The other options—IRDP, MGNREGA, and NSDM—do not involve the Service Area Approach as a core mechanism. > Service Area Approach = Lead Bank Scheme's territorial credit assignment model.
Question details
Year
2019
Paper
GS Paper 1
Question
Q61
Subject
Economy
Sub-topic
Bank credit and rural lending schemes
Type
Factual single
Difficulty
Medium
Nature
Static
Source hint
Lead Bank Scheme documentation
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