AIRRBEA Pushes for Resolutions: Key RRB Employee Issues Addressed at 12th JCC Meeting

The All India Regional Rural Bank Employees Association (AIRRBEA) highlighted several critical issues during the 12th Joint Consultative Committee (JCC) meeting held in Mumbai on June 12. These deliberations focused on the pending matters related to recruitment, promotions, and Performance Linked Incentive (PLI) in various Regional Rural Banks (RRBs).

The meeting was chaired by the Chairman of NABARD, which has been an apex supervisory body for overall supervision of Regional Rural Banks, officials of the Department of Financial Services (DFS) and the representatives of two sponsor banks namely Indian bank and Canara bank. 

The meeting addressed key Issues of the Regional Rural Banks and they are as follows -

Recruitment Challenges

One of the most pressing concerns raised was the acute shortage of staff due to the prolonged halt in recruitment. The Bank of Baroda’s failure to fill vacancies for the past four years has led to severe staffing shortages, impacting customer service quality in its RRBs. Despite the urgent need, some sponsor banks have reported zero vacancies in recent recruitment cycles. This issue has sparked significant unrest among employees, leading to threats of an indefinite strike if not resolved by June 25 

Promotion Policies

The promotion processes within RRBs also came under scrutiny. AIRRBEA pointed out that the promotion criteria and practices varied widely across different RRBs, causing inconsistencies and dissatisfaction among employees. They called for uniformity in promotion policies, similar to those followed by sponsor banks, and highlighted the need for immediate amendments to the Human Resources (HR) policies to address these disparities.

Furthermore, the association advocated for specific relaxations in promotion policies for ex-servicemen, aligning with practices in other industries. This adjustment would help in recognizing the unique contributions of ex-servicemen and ensure their smoother integration and advancement within the RRBs.

Performance Linked Incentive (PLI) Discrepancies

Another critical issue discussed was the non-payment of PLI in certain RRBs, such as J&K Grameen Bank, Assam Gramin Vikash Bank, and Aryavart Bank. Despite these banks showing profits, their employees have not received PLI. NABARD officials clarified that changes in the profit reflected in the balance sheet should be adjusted in the next fiscal year’s balance sheet, but the current year’s PLI must be disbursed based on the approved balance sheet.

Pension Schemes Implementation

The letter also raised pending issues related to the pension scheme. It was agreed in principle that necessary clarification will be issued to all RRBs to implement the computer increment in line with the implementation of the pension scheme, pending the resolution of court matters. Furthermore, the AIRRBEA highlighted the need to address pension entitlements for those who resigned or were terminated before April 1, 2018, since Voluntary Retirement Scheme (VRS) was not introduced in RRBs at that time. The DFS and NABARD agreed to consider this issue positively.

Additionally, the association requested that a second option for opting into the pension scheme be granted to those who missed the initial deadline for various reasons. This matter has been pending for the last four years, and the DFS and NABARD assured that they would take the necessary steps in due consultation to resolve it.

Broader HR and Operational Issues

Beyond recruitment and promotions, the meeting also covered a range of other HR and operational issues. AIRRBEA emphasised the need for uniform allowances, such as fuel and mobile allowances, staff loans, and compensation for additional duties like attending Lok Adalat sessions. They also addressed the disparities in medical insurance provisions for retirees and the need for better software and connectivity solutions to improve banking services.

The association’s delegation met with officials from several sponsor banks, including the Bank of India and Union Bank, to discuss these issues in detail. They received assurances of support and a commitment to resolving the raised concerns promptly.

The Joint Consultative Committee (JCC) was formed in the year 2009 by the then Finance Minister Pranab Mukherjee to review the performance of RRBs and undertake the resolution of the challenges they face. 

Previous JCC Action Points Unresolved

The XI JCC meeting held in December 2020 discussed various action points that remain unmet and unresolved. According to the accessed Action Taken Report (ATR) of the XI JCC meeting, critical issues such as manpower planning, adherence to the Mitra Committee guidelines in recruitment, and sponsor banks curtailing vacancies in the RRBs are still unresolved.

Image: Action Taken Report of the XI JCC meeting

AIRRBEA Secretary General Venkateshwar Reddy told Kanal, “The Joint Consultative Committee was established to take serious action-oriented decisions to ensure seamless functioning of the RRBs. However, the unresolved ATR of the XI JCC exposes a non-serious approach to crucial issues.”

According to Venkateshwar Reddy, the JCC has met only thrice in the span of seven years, despite being scheduled to meet annually.

As per the AIRRBEA Secretary General, the 12th JCC meeting headed by active participation and promises of intervention from NABARD and sponsor banks may offer hope for resolving the long-standing issues, aiming to enhance the working conditions for RRB employees and, ultimately, the quality of rural banking services.