TOPSIS Method Application in Assessing Progress of Regional Rural Banks

This study examines the evolution and performance of Regional Rural Banks (RRBs) in India, focusing on their ranking based on various performance indicators. It aims to analyze developments in financial health of RRBs, geographical progress and technological advancements. By examining these factors, the study provides insights into the overall impact of policy changes on RRBs and their role in promoting financial inclusion in rural areas. The findings reveal significant differences among RRBs, highlighting the need for targeted interventions to improve their effectiveness and efficiency. Regional Rural Banks (RRBs) were established in India in with the primary objective of providing banking services to rural areas, especially the disadvantaged population. The creation of RRBs is a key step in the government's strategy to provide credit to the agricultural sector, small scale industries and other rural sectors that lack adequate financial services. Over decades, RRBs have played an important role in promoting financial inclusion and supporting rural development. Despite the important role of RRBs, RRBs have faced many challenges including problems related to profitability, non-performing assets (NPAs) and operational inefficiency. In response, various reforms have been introduced to improve their financial health and expand their reach. Consolidation of technology, consolidation of RRBs and policy changes have significantly affected their performance. The significance of this research lies in its potential to contribute to understanding the role and performance of Regional Rural Banks (RRBs) in India's financial sector. RRBs play an important role in promoting financial inclusion and rural development, although their performance has been inconsistent across regions and periods. This study makes several important contributions: Policy Implications: The findings of this research can inform policy makers about the effectiveness of current policies related to RRBs. By identifying the strengths and weaknesses in RRB operations, the study will guide future reforms aimed at improving the performance of these banks. Net Profit (Million INR), Loan Disbursement Efficiency (%), NPA Ratio (%), Operational Costs (Million INR). RRB X, RRB Y, RRB Z, RRB W, RRB V. The results indicate that RRB W achieved the highest rank, while RRB Z had the lowest rank being attained. The value of the dataset for Corporate developments in regional rural banks according to the TOPSIS Method, Integrated Pest Management achieves the highest ranking.”