The basic aim of Lead Bank Scheme is that

The Lead Bank Scheme (LBS) was introduced by the Reserve Bank of India in December 1969, following the recommendations of the Gadgil Study Group and the Nariman Committee [3]. The core philosophy of the scheme is the 'Area Approach,' where individual public and private sector banks are assigned specific districts to act as consortium leaders [3]. The basic aim is for these designated lead banks to adopt particular districts for intensive development by coordinating with other financial institutions and government agencies [1]. This involves conducting surveys to identify credit gaps, preparing District Credit Plans, and enhancing the flow of bank finance to priority sectors to promote overall rural development [1]. While branch expansion and deposit mobilization are components of the scheme, they serve the broader objective of integrated district-wise economic development rather than being the sole primary aim.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > ii) Lead Bank Scheme > p. 74
2. [3] https://slbcne.nic.in/NE/intro.pdf