Viability Plan 2.0: Strengthening the Backbone of Rural Banking

The Department of Financial Services has approved Viability Plan 2.0 for Regional Rural Banks (RRBs) to enhance their financial stability and efficiency. The plan will cover 2025-26 to 2027-28, focusing on operational excellence, asset quality, profitability, and growth to align RRBs with national priorities.

The Department of Financial Services has unveiled Viability Plan 2.0 for Regional Rural Banks (RRBs), aiming to bolster their financial stability and improve operations. Announced by the Finance Ministry, this three-year strategic initiative will span from 2025-26 to 2027-28.

Originally launched to run from FY2021-22 to FY2024-25, the Viability Plan seeks to tighten performance monitoring and usher in governance reforms within RRBs. Given the evolving financial landscape, the revised plan endeavours to enhance long-term competitiveness and financial sustainability among these banks.

Plan 2.0 puts emphasis on four primary pillars: operational excellence, asset quality, profitability, and growth. The strategy presents metrics like CRAR, credit-deposit ratios, and digital adoption levels. It aims to fortify the financial framework of all 28 RRBs while fostering rural credit expansion, digital inclusion, and nationwide financial outreach.