A STUDY ON THE ROLE OF BANKS IN DEVELOPMENT OF THE DISTRICT

Abstract

  Financial Institutions play an important role in the process of economic development.  The major job involved in this process is to blend extension service and infrastructure facilities with credit disbursement. The credit plan is prepared by detailing the lending strategies with development strategies.  Hence, the efforts of the development agencies and financial institutions should have the same direction and objectives. For this purpose, close co-ordination among all the developmental agencies and financial institutions is necessary. With the introduction of Service Area Approach, the planning strategy for lending has been more logically revamped.  Under the new dispensation, a Branch Manager in rural and semi- urban area covered by Service Area Approach has to gain intimate knowledge of his service area, its activities, potentials and the like.  He has to assess the credit requirement of the area with all intimacy and sincerity for its integral development.  This lending programmes have to necessarily be got approved by the controlling offices concerned.  It becomes the Branch Credit Plan for the year concerned.  This will be aggregated in Block Level Bankers Committee Meetings.  Such Block Credit Plan along with the lending programmes of semi-urban branches not covered under SAA, when aggregated, becomes the District Credit Plan.