Department of Financial Services (DFS) approves Viability Plan 2.0 for Regional Rural Banks (RRBs)

Key facts

• The Department of Financial Services (DFS) has approved Viability Plan 2.0 for Regional Rural Banks (RRBs) to strengthen financial stability and improve operational efficiency.
• The revised plan is approved for a three-year period from 2025-26 to 2027-28.
• Viability Plan 2.0 comprises 30 performance parameters anchored around four pillars: operational excellence, asset quality, profitability, and growth.
• Key critical metrics include Capital to Risk-weighted Assets Ratio (CRAR), credit-deposit ratio, digital adoption, Non-Performing Asset (NPA) levels, recovery performance, profitability ratios, and performance in implementation of central government schemes.
• The initiative is expected to improve operational efficiency across all 28 RRBs and ensure alignment with national priorities of rural credit expansion, digital inclusion, and financial outreach.