Government is reviewing the financial performance of Regional Rural Banks (RRBs) at national and regional levels. The agenda items for the review meetings, inter-alia, include:

1. Review of the performance of RRBs on Financial Parameters and technology upgradation.
2. Thrust on Micro Small and Medium Enterprise (MSME) portfolio.
3. Importance on loan diversification towards Agri-allied, MSME and Retail Sectors. 

 Financial health of RRBs has improved in the recent years as they have posted highest ever consolidated net profit of ₹ 7,571 crore during FY 2023-24. Also, the RRBs have shown consistent improvement in key financial parameters like CRAR, deposits, advances, NPA, CD ratio etc. The Key Financial Parameters of RRBs have improved consistently in past years. The Total Balance sheet Size of RRBs have increased from Rs. 7,04,556 Crore in FY 2021- 22 to Rs. 8,40,080 Crore in FY 2023-24. Further the Net NPA has declined from 4.7% in FY 2021- 22 to 2.4%  in FY 2023-24. Also the Credit to Deposit Ratio has increased from 64.5% to 71.4% from FY 2021-22 to FY 2023-24.

Government has also reviewed the progress made by RRBs in deepening financial inclusion in rural and remote areas by reviewing performance on various financial inclusion schemes like Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana etc.

This information was given by Minister of State in the Ministry of Finance Shri Pankaj Chaudhary written reply to a question in Rajya Sabha.

RRB financial performance review highlights strengthened capital adequacy, reduced NPAs and renewed focus on MSME lending and inclusion. Government review of Regional Rural Banks emphasises financial performance, capital adequacy, technology upgradation and credit diversification toward agri allied, MSME and retail sectors, noting improved deposits, advances, reduced net NPAs and higher credit to deposit ratio; oversight also examines RRBs' progress in implementing rural financial inclusion and social security schemes.