New Delhi, July 27 -- The Union finance ministry has asked regional rural banks (RRBs) to focus on strengthening and expanding digital banking services as part of the Viability Plan 2.0, signalling a shift from balance-sheet repair to technology-led expansion, according to two people aware of the developments.

The department of financial services revised the Viability Plan, its three-year performance monitoring framework for RRBs, in May, extending it for another three years through FY28 after its first cycle from FY22 to FY25.

The government wants RRBs to improve operational efficiency, attract new customers, mobilize low-cost deposits and expand credit through digital channels while competing more effectively with commercial banks and...