Module: General Practice
Q48: Under the Lead Bank Scheme, what Credit Deposit Ratio threshold, along with missed credit targets, requires the formation of a Special Sub-Committee to draw up a Monitorable Action Plan?
✅ Correct Answer: B
The correct answer is below 40 percent.
Districts that have a ratio between 40 percent and 60 percent are watched directly by the District Consultative Committee.
For districts that drop below the 40 percent mark and also fail to hit their credit goals, the Lead District Manager calls together a Special Sub-Committee to run an action plan.
Also, districts that have a very low ratio of less than 20 percent are put into a special group.
This special group needs the action plan and direct help from the state government to build up local facilities.
Districts that have a ratio between 40 percent and 60 percent are watched directly by the District Consultative Committee.
For districts that drop below the 40 percent mark and also fail to hit their credit goals, the Lead District Manager calls together a Special Sub-Committee to run an action plan.
Also, districts that have a very low ratio of less than 20 percent are put into a special group.
This special group needs the action plan and direct help from the state government to build up local facilities.
🧠 Real-World Scenario:
Imagine a remote district is struggling. The locals are depositing money, but nobody is taking out loans, causing their CD Ratio to crash to 35%. Suddenly, the RBI notices this massive drop on their reports.
According to the rules, they can force the Lead District Manager to instantly form a Special Sub-Committee. This means falling below 40% triggers emergency life-support mode to figure out why the local economy is frozen.