Reflections on the Performance of Regional Rural Banks (RRBs) and the Need for their Revitalization on the lines of Enhanced Access and Service Excellence (EASE)

The decline in the Credit-Deposit Ratio in Regional Rural Banks (RRBs) over the years and the consequent increase in investment by RRBs in government securities and other approved securities clearly show that RRBs have deviated from their stated objective to a greater extent. In fact, RRBs are expected to cater to the credit needs of rural areas, and the lack of institutional organized credit supply in rural areas needs to be tackled with the active involvement of RRBs in the lending process. But, owing to the changes happening in the banking field especially since the onset of reforms, many RRBs have failed to live up to this spirit. Against this background, the Government of India has started attempts to reform the RRBs on the lines of the EASE (Enhanced Access and Service Excellence). With EASE being introduced to revitalize the RRBs in tune with technological changes and customer requirements, RRBs may be able to retain their position as the frontrunner of rural institutional finance in India.