Department of Financial Services approved Viability Plan 2.0 for Regional Rural Banks in December 2024, covering 2025-26 to 2027-28. The three-year initiative targets operational efficiency improvement across India's 43 RRBs serving rural and semi-urban areas. Plan focuses on technology adoption, digital banking expansion, financial inclusion enhancement, and staff capacity building. Government aims to strengthen RRBs' sustainability while maintaining their developmental mandate for agricultural and rural credit delivery.

Viability Plan 2.0 represents the government's strategic intervention to address persistent challenges in RRB operations. Unlike commercial banks, RRBs were established under RRB Act 1976 to serve rural areas with limited profitability, creating sustainability issues. The plan acknowledges that RRBs handle 15% of rural credit but face technology gaps, skills shortages, and operational inefficiencies. Key mechanisms include digital infrastructure upgrades, core banking solutions implementation, staff training programs, and process automation. The initiative aligns with Jan Dhan-Aadhaar-Mobile trinity for financial inclusion. RRBs' unique ownership structure (50% Central Government, 35% Sponsor Bank, 15% State Government) necessitates coordinated policy support. Plan 2.0 builds on previous amalgamation efforts that reduced RRBs from 196 to 43. Success metrics include improved CASA ratios, reduced NPA levels, enhanced digital transaction volumes, and expanded rural penetration. The initiative supports government's broader financial inclusion agenda while ensuring RRBs remain commercially viable without compromising their social banking mandate.