With reference to “Revitalise the Lead Bank Scheme” (Business Line, August 6), there is a pressing need to revamp and revitalise the Lead Bank Scheme so as to make it an effective instrument for bringing about meaningful co-ordination among banks operating in a district. This can bring about greater participation among banks and financial institutions in achieving full financial inclusion. But the lead bank scheme still has several operational problems.

Financial inclusion calls for united action on the part of all banks and financial institutions operating in a district. An approach on the lines of area approach can be adopted and in each area or location a particular bank can be given responsibility for achieving meaningful financial inclusion.

I also agree that a system of full computerisation of the process of data gathering and feeding of data by all banks must be in place. All banks must enter the data online on a daily basis. With the help of this, the lead district office can periodically prepare and review reports, yearly draft plans, and financial inclusion plans, from time to time.

District credit plan can also be prepared with ease. I also agree that the District-level Consultative Committees (DLCC) must be revamped and the periodic meetings must be result-oriented and not mere rituals. The revamped LBS must become an effective instrument in bringing about full and active involvement of all member banks in all efforts and schemes.

Adequately qualified officers with flair for co-ordinating and development work must be identified and posted as Chief Lead District Manager. The RBI must give adequate importance to the scheme and its revamp and revitalisation. The Regional Director of the RBI in each State must take the scheme seriously so that all banks can involve themselves fully in the scheme and its implementation.

K. K. Amnmannaya Udupi

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