They should move in into areas and sectors of the community where already some growth of directly productive activities has taken place and provide the necessary supporting finance. In sharp contrast to this, when we in our development strategy refer to the crucial role of banks in social transformation, we have something quite different in mind. In the strategy that we have chosen for ourselves we do not regard the banks as a passive infrastructure facility. We should like them to serve as an im­portant prime mover in the development process. Their function is not that of following in the wake of development but preceding it. They are important to us not merely because of the usefulness of their repository and allocative functions vis-a-vis invertible resources, but because of their much more basic role as a 'leading sector' and a catalyst in the social and economic development of our country.

What precisely does one expect the banks to do then? I would attempt an answer, in simple language. There are certain traditional functions of the banks; every endeavour should be made to ensure that in performing them we keep the objective of maximising the social benefits in mind. Banks have to undertake certain development functions and work out precise programmes of action that will go to activate the latent energy of the community and impart it a sense of creative dynamism.

The dichotomy between traditional and developmental func­tions is not to be taken too literally. Traditional functions usually refer to such activities as deposit mobilisation, loaning out of funds and a host of other customary services provided by the banks to their clients. In performing these functions, one can adopt a traditional attitude or the one infused with innovative and developmental fervour. What is important for our banks is to perform these services with a zeal. Whether it is the task of branch expansion, deposit mobilisation or credit extension, the banks should increasingly evaluate these activities in terms of the contribution that they are likely to make towards achieving a desirable pattern of social and economic development. So far as developmental functions as such are concerned, they call for a radical change in the attitude of a traditional banker. In order to promote development of a given region, a bank has to make a detailed survey of the natural and human resources of that region. In the light of this survey, it must work out some broad plans and programmes of development.