LEAD BANK SCHEME

Absence of LDO discredits RBI in JK
BILAL HUSSAIN

In rest of the India the Reserve Bank of India [RBI] — the central banking system of India which controls the monetary policy of the rupee as well as USD currency reserves— has Lead District Officer in all districts while none is deputed in any of 22 district of Jammu and Kashmir.
According to a RBI report of the ‘High Level Committee to on the Lead Bank Scheme’ The service areas are to be allocated to the branches by a committee headed by the Lead District Officer [LDO] of the Reserve Bank of India with Lead Bank Officer of the district and the concerned officer from NABARD as members. “Unfortunately it is not the case with the state. There is a Regional Director, RBI J&K stationed at Jammu and Deputy General Manager in Charge in Srinagar. While no LDO is deputed in any district of the state,” said an economic expert.
The role of LDO of the RBI is to act as a catalytic agent for developmental activities in the district. “To clarify position with respect to various policy guidelines issued by RBI, conduct periodic branch visits and participate in various meetings connected with Lead Bank Scheme (LBS). Bring to the notice of the regulator policy issues at the field level that require examination at the apex level which may have wider ramifications. To associate with the planning process at the district level and facilitate financial inclusion and financial literacy activities in the district,” scheme mentions.
The LDO of Reserve Bank is also a member of the District Consultative Committee (DCC). The Reserve Bank LDO should attend these public meetings and give a feedback to the respective Regional Office of the Reserve Bank as also to the Banking ombudsman in the state on the grievances raised during such meetings and the manner of their resolution.
According to the scheme the Lead District Officer of RBI and the officer concerned from NABARD have to attend the meetings of the Block Level Bankers’ Committees (BLBCs). In case of J&K the meeting does take place in-absence of LDO.
The preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as “...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.”
The RBI does stick to its mandate in rest of the India but when it comes to J&K it limits its role, laments an economist.
Despite several attempts to reach the Regional Director of Reserve Bank of India for Jammu and Kashmir, Arnab Roy could not be contacted for his comments.