What happened (FY 2025–26): RRB credit growth and PSL achievement

Regional Rural Banks (RRBs) expanded rural credit and maintained strong Priority Sector Lending (PSL) performance during FY 2025–26.

Background: PSL framework and RRB lending

The Reserve Bank of India’s Priority Sector Lending (PSL) framework sets target-based expectations for banks to lend to priority sectors such as agriculture, MSMEs, and weaker sections; RRBs are institutionally focused on rural credit delivery.