**Summary: Department of Financial Services Approves Viability Plan 2.0 for Regional Rural Banks (RRBs)**
**Overview**
On May 5, 2026, the Department of Financial Services (DFS) under the Ministry of Finance approved the "Viability Plan 2.0" for Regional Rural Banks (RRBs). This revised three-year framework is designed to strengthen financial stability, enhance sustainability, and improve operational efficiency across all 28 RRBs in India.
**Timeline and Scope**
* **Duration:** A three-year period covering FY 2025-26 to FY 2027-28.
* **Predecessor:** The plan succeeds the initial Viability Plan (FY 2021-22 to FY 2024-25), which focused on institutionalizing performance monitoring and governance reforms.
* **Coverage:** All 28 Regional Rural Banks.
**Framework and Key Pillars**
The Viability Plan 2.0 utilizes a comprehensive assessment framework consisting of **30 performance parameters** anchored around four primary pillars:
1. **Operational Excellence:** Focus on internal efficiency and process optimization.
2. **Asset Quality:** Monitoring the health of the loan portfolio.
3. **Profitability:** Enhancing financial returns and sustainability.
4. **Growth:** Driving the expansion of credit and services.
**Key Metrics and Performance Indicators**
The DFS will monitor specific critical metrics to evaluate the health of RRBs, including:
* Capital to Risk-weighted Assets Ratio (CRAR)
* Credit-Deposit (CD) Ratio
* Non-Performing Asset (NPA) levels and recovery performance
* Digital adoption rates
* Profitability ratios
* Success in implementing Government of India schemes
**Strategic Objectives**
The initiative aims to align RRBs with national priorities, specifically focusing on:
* Rural credit expansion.
* Digital inclusion.
* Broadening financial outreach to underserved sectors.
**Administrative Details**
* **Posted Date:** 05 May 2026, 7:17 PM
* **Source:** PIB Delhi
* **Release ID:** 2258126
Key Entities Referenced
Viability Plan 2.0: A revised three-year strategic framework (2025-26 to 2027-28) designed to enhance financial sustainability, governance, and operational efficiency across Regional Rural Banks through 30 performance parameters.
Regional Rural Banks (RRBs): A group of 28 financial institutions in India targeted for performance monitoring, rural credit expansion, and digital inclusion under the Viability Plan 2.0 framework.
Department of Financial Services (DFS): The primary department within the Ministry of Finance responsible for approving and overseeing the performance monitoring and governance reforms for Regional Rural Banks.
Ministry of Finance
Department of Financial Services (DFS) Approves
Viability Plan 2.0 for Regional Rural Banks (RRBs)
Revised three-year framework aims at strengthening financial
stability and improving operational efficiency across all 28
RRBs
Posted On: 05 MAY 2026 7:17PM by PIB Delhi
To institutionalize performance monitoring and strengthen governance reforms in Regional Rural Banks
(RRBs), the Department of Financial Services (DFS) had introduced a three-year Viability Plan covering
FY 2021-22 to FY 2024-25. The framework has been instrumental in improving financial performance
and strengthening monitoring mechanisms across RRBs. In view of emerging financial sector challenges
and the need for continued oversight, DFS has now approved a revised Viability Plan 2.0 for a further
period of three years from 2025-26 to 2027-28, aimed at enhancing financial sustainability and long-term
competitiveness of RRBs.
The Viability Plan 2.0 comprises a defined set of 30 performance parameters anchored around four main
key pillars viz. operational excellence, asset quality, profitability, and growth. The key critical metrics
across these four pillars include CRAR, credit-deposit ratio, digital adoption, NPA levels, recovery
performance, profitability ratios and performance in implementation of Government of India schemes.
In short, the Viability Plan 2.0 provides a balanced and comprehensive framework to assess and monitor
the overall health and efficiency of RRBs. The initiative is expected to strengthen financial stability and
improve operational efficiency across all 28 RRBs and also ensure that RRBs remain aligned with national
priorities of rural credit expansion, digital inclusion, and financial outreach.
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