Regional Rural Banks losing ground to private banks amid tech challenges

The increasing presence of private sector banks has made the situation more challenging as RRBs fight the battle with outdated tools while other banks have advanced technology and basic infrastructure

Lalit Singh, a farmer in Aligarh, Uttar Pradesh, who was a dedicated customer of a Regional Rural Bank (RRB), recently moved his account to a private sector bank.

“Since the RRB did not offer internet banking, it made things difficult for me. Although I was a long-time customer of the RRB, the facilities are better at other banks,” he explained.

A branch manager from an RRB in western Uttar Pradesh said their sponsor banks have emerged as their primary competition. The increasing presence of private sector banks has made the situation more challenging, as RRBs are left