Banking has to play a continuous and active part in the deve­lopment of the country and, therefore, inevitably both the exten­sive and intensive coverage of banking activities has to be planned in a systematic and coordinated manner. The concept of lead bank scheme in this context is of vital significance. This con­cept is new and it will acquire a special emphasis as time passes. However, unfortunately, there seem to be some misconceptions about its scope and utility. In some quarters the idea has gone round that the main task of the lead bank in a district is only to open new branches, Some banks appear to treat the surveys. which are now in progress, as a thing to be done only to comply with the Reserve Bank's directive. I think it should be clear by now that the lead bank scheme was not intended merely to identify centres for opening branches — this could be done without an elaborate survey of the district as a whole. District surveys are intended to form the basis for chalking out future programmes for development. The identification of the growth centres and assessment of deposit potential and credit gaps will have to be followed up by formulation of concrete proposals for action.

I am happy to learn that you have been receiving good co­operation from the State Governments for the preliminary work of the lead banks. With the experience gained and the contacts built up with the State authorities, it will not be difficult to prepare the ground for the next phases of the operation. Here. too, I like to hear what you propose to do to put the lead bank scheme to really purposeful and progressive uses. Whatever you do, your success will be judged in the country by your ability to command the respect, trust and affection of the people of the district or taluka where your branches function. And when I talk of people, I have in mind the people as a whole and not a few rich and privileged among them.

The success of the nationalised banks would depend a great deal on the cooperation of all the staff of the banks. They have already pledged their full support to make this gigantic task a success. Nationalisation of banks evoked enthusiastic response from the employees of the banks all over the country and I am sure there should be no difficulty in enlisting the cooperation of the officers and staff. In any of the major areas of banking activity, whether it is deposit mobilisation, better customer service, or extension of banking services in the remote villages, no progress can be made unless the employees participate actively with a new fervour and dedication. The fund of goodwill generated has to be jealously maintained and quickly transformed into action for the good of the society.