Indian Lead Bank Scheme – District Consultative Committees – Inclusion of Director of MSME-DI

  The District Consultative Committee plays an important role in formulating the broad guidelines for the Annual District Plan, to be executed by the Lead Bank.

 To strengthen the linkages between the Banks and the Micro Small and Medium Enterprises (MSME), in the district, Reserve Bank of India, vide its Notification has advised Lead Banks to invite the concerned Director of MSME-DI to attend the District Consultative Committee (DCC) meetings as invitee in those districts where MSME clusters are located.

 This would also aid in increasing the credit flow to the MSME Sector, especially where MSME clusters are located.

 The concept of DCCs was first mooted in the 1972 Banking Commission, and came into existence during 1971-73. The chief aim of DCCs is to facilitate co-ordination of activities of all the Banks and the financial institutions on the one hand and Government departments on the other.


The constituents of the DCCs are : –

  • Chairman – District Collector/Deputy Commissioner

  • Convenor – Lead District Manger

     Members : –

  • Chief Executive Officer, ZP

  • District Planning Officer

  • Project Direcotr, DRDA

  • General Manager, DIC

     Executive Officer, State SC & BC Corporations, District Level functionaries of

  • Agriculture, Veterinary, Animal Husbandary, Sericulture, Fisheries and Irrigation dept., etc.

  • Lead District Officer, RBI

  • Representative of NABARD

  • Regional Managers/District Coordinators of 5/6 commercial banks having a large commitment under credit plan, priority sector lending and branch network

  • Representative of RRB (Regional Rural Bank)

  • District representatives of State Financial Corporation KVIC & KVIB

  • Representatives of Dist. Central Co-operative Bank and other Co-operative Banks having large commitment under credit plans

  • Other Government departments, Corporations, Boards, Universities and

  • Banks, which are not permanent members, may be invited to specific meetings, whenever considered necessary, on the basis of agenda items.

     The ideal strength of DCC is 20 to 25 members so that the discussion at this forum are meaningful and result oriented. The DCC meets once in a quarter.

 MSME Clusters are the brainchild of ‘The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI)’.

 The benefit of MSME Clusters are :

  1. key strategy tool for enhancing the productivity,competitiveness as well as capacity building of Micro and Small Enterprises (MSEs).

  2. enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.

  3. Setting up of common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc).

  4. Give rise to collective benefits, for example through the spontaneous inflow of suppliers of raw materials, components and machinery or the availability of workers with sector specific skills.

  5. Favour the creation of providers of specialized technical,administrative and financial services.

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