Mumbai, Aug. 19 -- Regional Rural Banks (RRBs) have continued to strengthen their role in promoting rural economic development and financial inclusion by expanding credit delivery and maintaining a strong focus on Priority Sector Lending (PSL) during FY 2025-26, the Finance Ministry said in a statement. The Ministry said the performance of RRBs under the Reserve Bank of India's Priority Sector Lending framework remained strong during the year. However, the gross loans outstanding of RRBs increased by 10.3 percent from nearly 5 lakh 24 thousand crore rupees in financial year 2024- 25 to over 5 lakh 78 thousand crore rupees in 2025-26.

The Ministry said that agriculture and allied activities remained the largest component of the RRB credi...