In order to achieve the objective of universal financial inclusion, RRBs have been directed to use a combination of strategies, which include (a) provision of basic banking products; (b) introduction of the Business Correspondent/Business Facilitator (BF) model; (c) adoption of the relaxed regulatory Know Your Customer (KYC) guidelines; (d) enhanced use of technology; and (e) setting up financial literacy centres in districts to achieve greater outreach.
Though the share of RRBs in aggregate deposits and gross bank credit is only around 2.5 to 3 per cent, they play a critical role in financial inclusion. RRBs are required to prepare Financial Inclusion Plans which are to be integrated with their business plans. The major highlights of their performance under the first FIP for the period April, 2010-March, 2013 are as under.