Background
The Nariman Committee was constituted by the Reserve Bank of India in 1975 to review the working of the Lead Bank Scheme and recommend measures to strengthen district-level credit planning and banking coordination.
It was set up in the context of expanding social banking after the nationalisation of major commercial banks in 1969.
Objectives
- To assess the performance of the Lead Bank Scheme.
- To improve coordination among banks and development agencies.
- To strengthen district credit planning.
Key Recommendations
Strengthening District Credit Planning
- Preparation of realistic and area-specific District Credit Plans.
- Alignment of credit with district development priorities.
Improved Coordination
- Strengthening of District Level Bankers’ Committees (DLBCs).
- Greater involvement of state government departments in credit planning.
Monitoring and Follow-up
- Regular review of credit targets and achievements.
- Mechanism for resolving inter-bank coordination issues.
Focus on Priority Sectors
- Increased attention to agriculture, small-scale industries and weaker sections.
- Expansion of rural banking outreach.
Significance
- Helped institutionalise district-level banking coordination.
- Reinforced the role of Lead Banks in developmental banking.
- Strengthened monitoring of priority sector lending.
Conclusion
The Nariman Committee (1975) played an important role in consolidating the Lead Bank Scheme and enhancing district-level financial planning. Its recommendations contributed to deepening financial inclusion and promoting regionally balanced credit distribution during the era of social banking.
