AnyTime News 
Pooja Srivastava
Anytime News Network
Regional Rural Banks (RRBs) have emerged as a stronger financial backbone for rural India during FY 2025-26, expanding credit delivery while maintaining a sharp focus on financial inclusion and priority sectors.
Gross loans outstanding of RRBs increased by 10.3% to ₹5.78 lakh crore, compared with ₹5.24 lakh crore in FY 2024-25. This represents an increase of nearly ₹54,186 crore in one year, reflecting a significant expansion in institutional credit across rural and semi-urban areas.
RRBs also recorded a strong performance under the Reserve Bank of India’s Priority Sector Lending framework. Against the prescribed overall PSL target of 75%, the average achievement reached 91.7% of Adjusted Net Bank Credit (ANBC). Almost all RRBs achieved the overall PSL target, highlighting their continued commitment to priority sectors and inclusive banking.
Agriculture remained the biggest driver of RRB lending. Credit outstanding to agriculture and allied activities stood at ₹3.78 lakh crore, accounting for around 77% of total Priority Sector Lending. Nearly 98% of agricultural lending was directed towards farm credit, supporting crop cultivation, allied activities and investment in the rural economy.
RRBs also played a crucial role in supporting rural entrepreneurship. Credit to the MSME sector stood at ₹66,978 crore, with more than 95% of this lending going to micro enterprises. This helped first-generation entrepreneurs, self-employed workers, artisans and small businesses gain access to formal institutional finance.
A major highlight was lending to weaker sections. RRBs extended ₹3.49 lakh crore in credit to these groups, strengthening equitable access to institutional finance. Loans for housing, education, renewable energy and social infrastructure further supported inclusive and sustainable development.
The FY 2025-26 performance clearly underlines the continuing importance of RRBs in strengthening rural livelihoods, supporting farmers and micro-enterprises, expanding formal credit and advancing balanced economic growth.
