Ministry of Finance Says Department of Financial Services Approved Viability Plan 2.0 for All 28 Regional Rural Banks on May 5, 2026 for Financial Stability and Operational Efficiency

The Ministry of Finance said on May 5, 2026 that the Department of Financial Services has approved Viability Plan 2.0 for Regional Rural Banks. The revised framework will run for three years, from 2025-26 to 2027-28, and is intended to improve financial sustainability, long-term competitiveness and continued oversight of all 28 RRBs. The earlier Viability Plan covered FY 2021-22 to FY 2024-25 and was introduced to institutionalise performance monitoring and strengthen governance reforms in Regional Rural Banks. According to the release, that framework helped improve financial performance and monitoring mechanisms across RRBs. Viability Plan 2.0 responds to emerging financial-sector challenges by giving the Department of Financial Services a structured and comparable way to assess the health of rural banking institutions. It uses 30 performance parameters grouped around four pillars: operational excellence, asset quality, profitability and growth. The critical metrics include CRAR, credit-deposit ratio, digital adoption, NPA levels, recovery performance, profitability ratios and performance in implementing Government of India schemes. The framework therefore covers both balance-sheet strength and service-delivery outcomes. Its exam relevance lies in the fact that Regional Rural Banks are central to rural credit, digital inclusion and financial outreach, especially where commercial bank branches may be less dense. By bringing all 28 RRBs under a balanced monitoring architecture, the plan is expected to improve operational efficiency, strengthen financial stability and keep RRBs aligned with national priorities. The release frames Viability Plan 2.0 not as a one-time audit, but as a three-year governance reform for sustained performance review.