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AIRRBEA Demand Immediate Action from Finance Ministry On RRB Employees’ Delayed Promotions and PLI
All India Regional Rural Bank Employees Association demands immediate intervention from Government of India as Regional Rural Banks delay promotions and Profit Linked Incentive payments post-amalgamation, citing misinterpretation of Human Resources revision norms.
Author: Neha Bodke
Published: June 11, 2025
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In a strongly worded representation to the Government of India, the All India Regional Rural Bank Employees Association (AIRRBEA) has raised red flags over widespread delays in employee promotions, fresh recruitments, and non-payment of Profit Linked Incentives (PLI) across recently amalgamated Regional Rural Banks (RRBs).
The association, which represents officers and employees from RRBs nationwide, has called upon Sri Sushil Kumar Singh, Director at the Department of Financial Services (DFS), Ministry of Finance, to urgently intervene and ensure adherence to already approved manpower norms and timely disbursal of staff incentives.
Promotion & Recruitment in Limbo
The communication, dated 10 June 2025, follows up on AIRRBEA’s earlier letter from April (Ref. No. 31 dated 19.04.2025). It underscores that many RRBs have paused the assessment of manpower and deferred promotion and recruitment exercises, citing the anticipated revision of HR norms by June-end. The Association says these decisions are based on verbal instructions and speculative interpretations, not official directives.
RRB managements are reportedly instructing unions that NABARD has advised withholding promotions until revised norms are approved. However, AIRRBEA argues this move violates the Standard Operating Procedures (SOPs) issued by NABARD, which clearly state that manpower assessment must be conducted as per the business figures as on 01.05.2025.
“The SOPs are clear, amalgamation is to be guided by business volume and staffing needs based on existing norms, not postponed for hypothetical policy updates,” the letter emphasized.
Legal Precedents Highlighted
To reinforce its stance, AIRRBEA cited landmark judicial rulings:
- Supreme Court in Union of India vs. K.K. Vadera (1989): Established that employees cannot be deprived of promotional rights due to administrative restructuring.
- Delhi High Court in Rajesh Kumar vs. UOI (WP(C) No. 1102/2016): Clarified that mere pendency of an amalgamation does not empower the employer to withhold promotions.
- AIRRBEA stressed that revisions in HR norms, if any, cannot be applied retrospectively and cannot override ongoing legitimate promotional exercises.
PLI Payments Also Delayed
In addition to the promotions issue, the letter also brings to attention another matter of concern which is non-payment of PLI (Profit Linked Incentive) for the financial year ending 31 March 2025.
Several RRBs are reportedly deferring PLI disbursement pending clarification from NABARD or DFS. However, AIRRBEA asserts that PLI is a well-established component of annual employee compensation and must be paid based on profits earned by the erstwhile RRBs before amalgamation.
“PLI is linked to the performance of RRBs in the pre-amalgamated state. There is no ambiguity here. Delaying it creates unnecessary discontent among employees,” the letter reads.
Call for Immediate Government Action
The letter urges the Ministry of Finance to:
- Direct all 28 RRBs to resume promotions and recruitments based on existing manpower norms.
- Ensure payment of PLI without delay, based on results as on 31.03.2025.
- Prevent any misinterpretation of SOPs or HR policy revisions, which may jeopardize employee morale during this transition phase.
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Signed by S Venkateswar Reddy, Secretary General of AIRRBEA, the letter has been marked to key officials, including the Chairman of NABARD and senior conveners involved in the RRB amalgamation process.
As the government undertakes one of the most significant structural shifts in the rural banking sector, employee confidence, fairness in promotions, and timely incentives remain key to ensuring a smooth and disruption-free amalgamation.
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