New Delhi, May 6 (BNP): The Department of Financial Services (DFS) has approved a revised Viability Plan 2.0 for Regional Rural Banks (RRBs) for the period 2025–26 to 2027–28, aimed at strengthening financial sustainability, governance, and long-term competitiveness in the rural banking sector.
The new framework builds on the earlier viability plan implemented from FY22 to FY25, which helped improve financial performance and strengthen monitoring systems across RRBs.
Viability Plan 2.0 introduces a structured performance evaluation system based on 30 key parameters under four major pillars — operational excellence, asset quality, profitability, and growth. These indicators are designed to provide a comprehensive assessment of RRB performance.
Key metrics under the framework include capital adequacy ratio (CRAR), credit-deposit ratio, non-performing assets (NPAs), recovery performance, profitability, and digital adoption levels. The plan also incorporates performance in implementing Government of India schemes to align operational outcomes with national priorities.
The government said the revised framework will enhance oversight, improve efficiency, and promote financial discipline across the 28 Regional Rural Banks in the country.
The initiative is expected to further strengthen rural credit delivery, deepen financial inclusion, and support digital banking expansion in underserved areas.
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