The All India Regional Rural Banks Employees Association (AIRRBEA) has demanded that 82 regional rural banks across the country be amalgamated into state-level rural bank under National Rural Bank, as per the recommendation of Vyas Committee report, along with full autonomy to the board of management of the banks.
At two separate meetings with government officials and Reserve Bank of India (RBI), it emerged that a separate identity for the RRBs will be maintained, and in no case they will be merged with sponsor banks, according to Dilip Kumar Mukherjee, Secretary General, AIRRBEA.
The next phase of consolidation of RRBs as state level RRBs might take place after reviewing the result of the RRBs in this financial year, he said.
“The government will consider the inter-connectivity of the same sponsor bank RRBs working in various states. Also, a draft of RRB staff service rules will be notified very soon. The new rule of promotion and recruitment of RRB staff is still pending with ministry of law. Immediate action has been assured to notify this rule also. Exemption of RRBs from the purview of EPF Act 1952 will be seriously considered by the banking division. All the concessions given to public sector banks for opening branches in unbanked areas will also be provided to RRBs and capital support is being considered for such branch opening as also in case of CRAR and CBS installation expenses,” said Mukherjee.
