AIRRBEA Delegation Meets MPs in Delhi Intensifying Appeal for Formation of NRBI

The All India Regional Rural Bank Employees Association (AIRRBEA) has put forth a strong appeal for the formation of the National Rural Bank of India (NRBI) by consolidating all Regional Rural Banks (RRBs) under a public sector framework. This move aims to enhance the efficiency and effectiveness of rural banking services across the country.

In this direction, members of the state units of the AIRRBEA across different RRBs have gathered in New Delhi and are meeting Members of Parliament (MPs) from their respective states across party lines, outlining several key points on the memorandum of NRBI formation.

AIRRBEA Bihar Delegation 

The Bihar AIRRBEA delegation from Dakshin Bihar Gramin Bank met MPs of different parties such as the Rashtriya Janata Dal (RJD), Lok Janshakti Party (LJP) and the Communist Party of India (Marxist-Leninist) Liberation.

Image: Bihar AIRRBEA Delegation with Rashtriya Janata Dal (RJD) Lok Sabha MP from Buxar Sudhakar Singh 

One of the members of the delegation told Kanal, “The Honourable MP from Buxar, Sudhakar Singh, carefully read our memorandum and appreciated the approach to forming NRBI. He suggested that we prepare it in detail so that it can be presented in Lok Sabha as a Private Member’s bill.”

The delegation then met the MP from Ara Lok Sabha constituency, CPI(ML)’s Sudama Prasad. 

As per an AIRRBEA member, Sudama Prasad assured complete support to the demand of forming NRBI as it aligns with his party’s stand to strengthen the financial inclusion of rural India. 

Image: Bihar AIRRBEA delegation meeting Communist Party of India (Marxist-Leninist) CPI (ML) Lok Sabha MP from Ara, Sudama Prasad

The delegation also handed over the memorandum to Rajesh Verma of the Lok Janshakti Party (LJP) and MP from Khagaria Lok Sabha constituency. As a matter of fact, LJP is a coalition partner in the NDA government at the centre.

Image: Bihar AIRRBEA delegation meeting Lok Janshakti Party Lok Sabha MP from Khagaria Rajesh Verma

AIRRBEA Mizoram Delegation

The AIRRBEA Mizoram delegation from the Mizoram Rural Bank reached out to their lone MP, Richard Vanlalhmangaih of the Zoram People’s Movement (ZPM), and submitted their memorandum. 

Image: AIRRBEA Mizoram Rural Bank unit meeting Mizoram Lok Sabha seat MP Richard Vanlalhmangaih 

While reacting to the meeting, the delegation of Mizoram Rural Bank, Lok Sabha MP Richard Vanlalhmangaih, told Kanal, “I raised the need for NRBI in yesterday’s all-party meeting of the Lok Sabha and further, I am trying to convince other members in this regard with an aim to deepen the reach of gramin banks in a better way.”

AIRRBEA Maharashtra Delegation

The AIRRBEA delegation from the Vidarbha Konkan Gramin Bank handed over the memorandum on the RRBs to Akola MP and leader of the Bharatiya Janata Party (BJP) Dr. Anup Dhotre and sought his support for the NRBI.

Image: AIRRBEA Vidarbha Konkan Gramin Bank unit meeting Akola Lok Sabha MP Dr. Anup Dhotre

The Akola MP assured the delegation of all help in NRBI’s formation. 

AIRRBEA Karnataka Delegation

The AIRRBEA delegation from the Karnataka Vikas Grameena Bank submitted the memorandum on NRBI formation to the Janata Dal Secular (JDS) leader and MP from Mandya Lok Sabha, H D Kumaraswamy. Kumaraswamy, who is also the Union Minister of Heavy Industries and Steel, listened to the demands of the RRBians and assured all help in his capacity.

Image: AIRRBEA delegation meeting JDS leader Union Minister of Heavy Industries and Steel H D Kumaraswamy

AIRRBEA Kerala Delegation

The AIRRBEA delegation of Kerala Gramin Bank met MPs of Indian National Congress (INC) and the Communist Party of India (Marxist) and conveyed the need to form the NRBI.

Image: AIRRBEA Kerala Delegation meeting CPI(M) MP K.Radhakrishnan 

Image: AIRRBEA Kerala Delegation meeting INC MP Francis George. 

A delegation also met the Aam Aadmi Party’s Rajya Sabha member Sanjay Singh and handed over the memorandum on the RRBs comprising their historical and present status. The memorandum emphasised the need for forming NRBI to enhance rural India’s financial inclusion.

Image: AIRRBEA delegation meeting AAP Rajya Sabha MP, Sanjay Singh

Seeking Support from Hundreds of MPs

AIRRBEA Secretary General Venkateshwar Reddy told Kanal, “Members of the AIRRBEA are camping in New Delhi amid the monsoon session of the parliament and are meeting MPs to seek their support for the formation of NRBI. The effort is to meet approximately hundreds of MPs and submit a memorandum outlining our needs.”

He added that the AIRRBEA would be emphasising the historical and current significance of RRBs and the necessity of establishing NRBI to enhance rural banking services across the country.

Historical Context and Current Status

RRBs were established under the RRBs Act of 1976 and played a crucial role in providing banking services to rural areas. From an initial count of 196 banks in 1987, mergers have reduced this number to 43 by 2019. RRBs have over 22,000 branches in 26 states and 3 Union Territories, serving approximately 400 million people.

Economic Contributions

RRBs have a collective reserve of around ₹40,000 crore and reported a consolidated net profit of ₹4,974 crore in the fiscal year 2022-23, which increased to ₹7,500 crore by March 31, 2024. Their ownership is divided between the Government of India (50%), respective state governments (15%), and sponsor banks (35%).

Rural Banking Impact

RRBs are pivotal in advancing financial inclusion:

• 90% of their total lending is to priority sectors, with 70% directed towards agriculture.
• 92% of their 22,000 branches are in rural or semi-urban areas.
• They hold a significant share in government-sponsored schemes like PMJDY, PMJJY, and APY.
• RRBs manage 32% of Self-Help Group (SHG) accounts and 28% of the total SHG loan amount.
• 18% of the active Kisan Credit Card accounts nationwide are handled by RRBs.
• They maintain a consolidated Capital to Risk Assets Ratio (CRAR) of 13.4%.
• As of the latest data, RRBs have total deposits of ₹6,08,509 crore and loans amounting to ₹4,10,738 crore, with total investments at ₹3,13,401 crore.

Concerns and Demands

AIRRBEA has voiced concerns over the colonialist attitude of sponsor banks, which they claim undermine the independence and efficiency of RRBs. The delegation is advocating for:

1. Establishment of NRBI, free from sponsor banks, to better serve rural India.
2. Compliance with the Government-approved "Manpower Planning" for 
3. improved customer service.
4. Annual recruitment and promotion processes based on business growth, with the HR Committee's report on promotion conditions implemented.
5. Adherence to the “equal pay for equal work” principle, including the regularisation of daily wage earners as per Supreme Court directives.
6. Full implementation of the 12th Bipartite Wage Settlement and 9th Joint Note as per the NIT Award and Supreme 
7. Court orders.
8. Equitable pension implementation from November 1, 1993, and compassionate appointment orders effective from 2009.

The move of the AIRRBEA members meeting MPs comes against the backdrop of the demand for merger of RRBs being placed by All India Bank Officers Confederation (AIBOC) and All India Bank Employees Association (AIBEA).