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Modi Government Allocates Rs 6212.03 Crore for Strengthening Regional Rural Banks

The Modi government has allocated Rs 6212.03 crore to Regional Rural Banks (RRBs) as part of the recapitalization scheme on March 6. RRBs, established in 1975 and owned by the Indian government, function at the regional level across various states. They were set up with the objective of offering fundamental banking and financial services to rural regions, specifically targeting small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs.

Notable Improvements in RRB Performance


  • Consolidated Capital to Risk-weighted Assets Ratio (CRAR) reached an all-time high of 13.83 percent by December 31, 2023, indicating strengthened financial position.


  • Achieved highest-ever consolidated net profit of Rs 4,974 crores in FY22-23 and Rs 5,236 crore by the third quarter of FY 2023-24.

Credit Expansion

  • Consolidated credit-deposit ratio rose to 72.13 percent as of September 30, 2023, the highest in the past 15 years.

Implementation of Viability Plan (VP)

3-Year Plan

  • Board-approved viability plan (VP) initiated in the financial year 2022-23 aimed at ensuring sustainable viability.


  • Well-defined implementation mechanism to support the sustainability of RRBs.

Role and Reach of RRBs

Community Support

  • Crucial role in extending banking and financial services to rural communities.

Supporting Sectors

  • Support agricultural activities and nurture small businesses.

Current Status

  • 43 RRBs sponsored by 12 scheduled commercial banks in India.

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