Department of Financial Services launched Viability Plan 2.0 in 2024 to strengthen India's 43 Regional Rural Banks serving rural and semi-urban areas. The plan focuses on digital transformation, credit enhancement, and financial inclusion initiatives. It includes technology upgrades, capacity building programs, and improved governance structures. RRBs currently serve over 14,000 branches across rural India, providing banking services to underserved populations. The initiative aims to improve operational efficiency and expand rural credit access through digitalization.

Regional Rural Banks were established under RRB Act 1976 as specialized institutions to provide banking services in rural areas, with joint ownership by Central Government (50%), State Government (15%), and Sponsor Banks (35%). Viability Plan 2.0 addresses longstanding challenges of RRBs including technology gaps, limited product portfolio, and operational inefficiencies that hamper rural credit delivery. The plan emphasizes digital infrastructure development, enabling RRBs to offer modern banking services like mobile banking, digital payments, and online loan processing to rural customers. This is crucial for India's financial inclusion goals, as RRBs serve districts where commercial banks have limited presence. The initiative aligns with government priorities of doubling farmers' income, promoting rural entrepreneurship, and achieving comprehensive financial inclusion. By strengthening RRBs through technology adoption and capacity building, the plan aims to improve agricultural credit flow, support rural MSMEs, and enhance banking penetration in underserved areas. Success of Viability Plan 2.0 is critical for rural economic development and achieving the vision of a digitally empowered rural India.