Government Strengthens RRBs through Regular Performance Reviews, Technology Upgradation and Financial Inclusion Initiatives

Government Periodically Monitors Regional Rural Banks Progress Under PMJDY, PMMY, PMSBY, PMJJBY and Atal Pension Yojana to Deepen Financial Inclusion

The Government of India regularly reviews the performance and financial health of Regional Rural Banks (RRBs) at national and regional levels.

The following reviews of RRBs have been held under the Chairpersonship of Finance Minister in last four financial years:

S.No	National/Regional level	Date and Place
1.	National level	07.07.2022 at New Delhi
2.	North-Eastern RRBs	21.07.2023 at Agartala
3.	Southern RRBs	04.08.2023 at Chennai
4.	Northern RRBs	30.08.2023 at New Delhi
5.	National level	19.08.2024 at New Delhi
6.	Western-Central RRBs	22.08.2024 at Udaipur
7.	North-Eastern RRBs	30.09.2024 at Itanagar
8.	Southern RRBs	09.11.2024 at Bengaluru
9.	Eastern RRBs	29.11.2024 at Patna
10.	Karnataka Grameena Bank	16.10.2025 at Ballari

Further, as a follow-up, Department of Financial Services (DFS) conducts periodic and regular meetings with RRBs and sponsor banks at various levels.

The agenda items for the review meetings, inter-alia, include:

1. Review of the performance of RRBs on financial parameters.
2. Focus on technology upgradation.
3. Thrust on Micro Small and Medium Enterprise (MSME) portfolio.
4. Importance on loan diversification towards Agri-allied, MSME and Retail Sectors.
5. Expansion of Financial inclusion in rural and remote areas. 

The financial health of RRBs has improved in the recent years. RRBs posted the highest ever consolidated net profit of Rs. 10,177 crores during FY 2025-26. RRBs have also shown consistent improvement in key financial parameters like Capital to Risk Weighted Asset Ratio (CRAR), deposits, advances, Non-Performing Asset (NPA), Credit-Deposit Ratio (CD ratio) etc. Performance of RRBs on key financial parameters in past three years is here:

Sr.No.	Key Financial Parameters	FY  2023-24	FY  2024-25	FY  2025-26
1.	Total Deposits (In Rs. Crore)	6,59,815	7,13,800	7,68,621
2.	Loans Outstanding (In Rs. Crore)	4,71,384	5,24,163	5,78,349
3.	Credit-Deposit Ratio (CD ratio) (%)	71.4	73.4	75.2
4.	Gross Non-Performing Asset (GNPA) (%)	6.1	5.4	5.3
5.	Net Non-Performing Asset (NNPA) (%)	2.4	2.0	2.1
6.	Net Profit (In Rs. Crore)	7,571	6,820	10,177
7.	Net Worth (In Rs. Crore)	56,780	63,927	74,086
8.	Capital to Risk Weighted Assets Ratio (CRAR) (%)	14.2	14.4	15.0

Source: NABARD

Government regularly reviews the progress made by RRBs in deepening financial inclusion in rural and remote areas. The targets for various financial inclusion schemes like Pradhan Mantri Jan-Dhan Yojana (PMJDY), Pradhan Mantri MUDRA Yojana (PMMY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY) are set by DFS and periodically monitored. 

This information was given by Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in Rajya Sabha today.

******

Regional rural bank oversight strengthens financial performance, technology adoption, diversified lending and financial inclusion in remote communities. Regional Rural Banks are regularly reviewed for financial performance, technology upgradation, MSME lending, loan diversification and financial inclusion in rural and remote areas. Their financial health improved over recent years, with growth in deposits, loans, credit-deposit ratio, net worth and capital adequacy, alongside improved asset-quality indicators. Financial-inclusion targets for bank-account access, micro-credit, insurance and pension schemes are set and periodically monitored to extend formal financial services.