Regional Rural Banks (RRBs) are enhancing rural economic development and financial inclusion by increasing credit delivery and focusing on Priority Sector Lending (PSL) during FY 2025–26, according to a Finance Ministry statement. RRBs performed well under the Reserve Bank of India’s PSL framework, with their gross loans outstanding rising by 10.3 percent from nearly 5.24 lakh crore rupees in FY 2024-25 to over 5.78 lakh crore rupees in FY 2025-26.

The Ministry noted that agriculture and allied activities made up the largest part of the RRB credit portfolio, with outstanding credit at 3.78 lakh crore rupees, representing 77 percent of total PSL. The MSME sector received about 67 thousand crore rupees, underscoring the key role of RRBs in promoting rural entrepreneurship and job creation. The financial performance reflects growth in rural credit, alignment with national priorities, and ongoing support for farmers and underserved segments.