RRB Viability Plan 2.0 Approved: Strengthening 28 Regional Rural Banks for 2025-28
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📌 Summary:
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Union Cabinet approved the Viability Plan 2.0 for Regional Rural Banks (RRBs) covering the period 2025-28 with financial support for recapitalisation and technology upgradation
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India currently has 28 RRBs (after consolidation from 196 in 2005 through mergers) operating in 26 states + 2 UTs with ~22,000 branches, serving primarily rural and semi-urban areas
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Viability Plan 1.0 (2019-24) improved the CRAR (Capital to Risk-weighted Assets Ratio) of most RRBs above the mandated 9%; Plan 2.0 targets further strengthening and digital banking expansion
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Sponsor banks (public sector banks) along with Central Government and State Governments share recapitalisation cost in 50:15:35 ratio
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RRBs play a crucial role in Priority Sector Lending (PSL), Kisan Credit Card (KCC) disbursement, SHG credit linkage, and PM-KISAN DBT
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Technology upgradation includes Core Banking Solution (CBS) integration with UPI, NACH, and e-KYC platforms
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Critical for financial inclusion under the Pradhan Mantri Jan Dhan Yojana (PMJDY) framework
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