Development Role of Rbi

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This role is, perhaps, the most unheralded aspect of our activities, yet it remains among the most critical. The Reserve Bank is one of the few central banks that has taken an active and direct role in supporting developmental activities in their country. The Reserve Bank’s developmental role includes -ensuring credit to productive sectors of the economy, -creating institutions to build financial infrastructure, -expanding access to affordable financial services, and…show more content…
The broad categories of advances under priority sector now include agriculture, micro and small enterprises sector, microcredit, education and housing. Lead Bank Scheme (LBS) (December 2009) Here designated banks were made key instruments for local development and were entrusted with the responsibility of identifying growth centres, assessing deposit potential and credit gaps and evolving a coordinated approach for credit deployment in each district, in concert with other banks and other agencies. The Reserve Bank has assigned a Lead District Manager for each district who acts as a catalytic force for promoting financial inclusion and smooth working between government and banks. The LBS has largely achieved its original objective of -bringing about overall improvements in branch expansion, -mobilisation of deposits and lending(credit planning) to the priority sectors, especially in rural/semi urban areas, - Achieving 100 per cent financial
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