The Role of Lead Banks in Financial Inclusion: Focus on Central Government Schemes

Abstract

Financial inclusion is a key driver of economic growth, enabling equitable access to financial resources for all sections of society. The Lead Bank Scheme (LBS), introduced by the Reserve Bank of India (RBI) in 1969, has been a major policy initiative aimed at promoting financial inclusion across India. The central government has also launched various programmes that complement the role of lead banks in facilitating inclusive growth. This research article delves into the role of lead banks in promoting financial inclusion, with a particular emphasis on the central government’s financial inclusion programmes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Mudra Yojana (PMMY), and other schemes aimed at reducing financial exclusion in rural and underserved areas.