Service area approach (SAA) is an improved version of area approach of Lead Bank Scheme.

Under SAA plan, each commercial bank / RRB branch in the rural and semi-urban area is designated to serve 15 to 25 villages for the planned and orderly development of rural and semi-urban areas.

The designated branch of a bank has to meet the banking needs of its service area vis--vis forge effective linkages between bank credit, production, productivity, and increase in income levels of the villages.