The question asks about the specific committee appointed by the Government of India in 1969 that recommended the formation of lead banks.

Identifying the Committee for Lead Bank Recommendation

In 1969, the Government of India took significant steps in the banking sector. One crucial recommendation was the introduction of the Lead Bank Scheme. This scheme aimed at making banks adopt particular districts for intensive development.

The committee responsible for recommending this innovative approach was the Nariman Committee. This committee was appointed by the Reserve Bank of India (RBI) to evolve a suitable area approach to development-oriented banking.

The Role of the Nariman Committee

The Nariman Committee, officially known as the Committee of Bankers, under the chairmanship of Shri F.K.F. Nariman, was tasked with suggesting steps for banks to play a developmental role, especially in rural and semi-urban areas, following the nationalization of major commercial banks in 1969. The committee proposed the Lead Bank Scheme as a framework for assigning specific districts to individual banks. Under this scheme, a designated lead bank for a district would coordinate the efforts of all banks and other financial institutions in that district for overall development.

Understanding the Lead Bank Scheme

The Lead Bank Scheme was introduced in December 1969. Its main objectives included:

• Identifying bankable areas and potential for development.
• Estimating credit needs and formulating banking development programs.
• Mobilizing deposits and extending credit facilities.
• Establishing effective liaison with government agencies and other financial institutions.

Other Committees Mentioned

• Bhagwati Committee: This committee is often associated with issues related to unemployment or poverty. It is not the committee that recommended the Lead Bank Scheme.
• Pranav Committee: This name does not correspond to a well-known committee in the context of Indian banking reforms in 1969.
• Narasimhan Committee: There have been multiple Narasimhan Committees, notably one in 1991 and another in 1998, which dealt with banking sector reforms. These are distinct from the committee recommending the Lead Bank Scheme in 1969.

Therefore, based on the historical context of Indian banking reforms and committee recommendations in 1969, the Nariman Committee is the correct answer.

Revision Table: Key Banking Committees

Additional Information: Banking Context in 1969

The year 1969 was pivotal for the Indian banking sector. In July 1969, 14 major commercial banks were nationalized by the Government of India. This move aimed to ensure that banking served broader social and developmental objectives, rather than being primarily profit-driven and catering only to certain segments of society. The nationalization led to increased focus on:

• Expanding bank branches to rural and unbanked areas.
• Directing credit towards priority sectors like agriculture, small scale industries, and weaker sections.
• Aligning banking operations with national planning goals.

The Lead Bank Scheme, recommended by the Nariman Committee shortly after nationalization, was a direct outcome of this new policy direction. It provided a structured approach for banks to contribute effectively to local economic development and financial inclusion across the country.