DFS approves viability plan 2.0 to improve operational efficiency of RRBs

New Delhi: The Department of Financial Services has approved viability plan 2.0 for to strengthen their and improve operational efficiency, the Finance Ministry said on Tuesday.

The three-year Viability Plan was originally introduced for the period FY2021-22 to FY2024-25 to institutionalise and strengthen in Regional Rural Banks (RRBs).

Also Read:

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 and long-term competitiveness of RRBs, the ministry said.

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 the central government schemes.

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, the ministry added.