UPSC Prelims 2019 · Question 11 of 99
UPSC Prelims 2019 question on Service Area Approach
- ExamUPSC CSE
- Year2019
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeDirect
The Service Area Approach was implemented under the purview of
Show answer
Answer: B. Lead Bank Scheme
Verdict
Correct answer: Lead Bank Scheme → Option (b).
Analysis
The Service Area Approach (SAA) was introduced in April 1989, in order to bring about an orderly and planned development of rural and semi-urban areas of the country.
It was extended to all Indian scheduled commercial banks including Regional Rural Banks (RRBs).
Service area approach is an alternative and improved method of Lead Bank Scheme for deployment of bank credit for rural development. Under SAA, each bank branch in rural and semi-urban area was designated to serve an area of 15 to 25 villages and the branch was responsible for meeting the needs of bank credit of its service area.