Question

The Lead Bank Scheme of RBI aims for the following objectives except:

• A. To coordinate the activities of banks and other development agencies
• B. To achieve the objectives of enhancing the flow of bank finance to the priority sector
• C. To promote the bank's role in overall development of the rural sector
• D. To strengthen financial inclusion by providing payment/remittance to migrant labor, low-income households, and small businesses

Hint:

The Lead Bank Scheme emphasizes rural development and credit flow to priority sectors.

Answer 1

The Correct Option is D

The Lead Bank Scheme, introduced by the RBI in 1969, primarily focuses on the following:
Coordination: Between banks and developmental agencies.
Priority Sector Lending: Ensuring adequate flow of credit to agriculture and rural development.
Rural Development: Promoting banks' role in rural economic growth.
Financial inclusion is a separate initiative under other RBI programs, such as the Jan Dhan Yojana.